4. Prepare a detailed overhead variance report that shows the variances for individual items of overhead. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) The drop down options for the box next to "expected production volume" and the box next to"production level achieved" are: 65%, 70%, 75%, 80%, 85%, 90%, 95%, 100% of capacity the drop down options for the box next to "volume variance" are: favorable, unfavorable, no variance. The drop down option for the boxes under "variable overhead costs" are: depreciation-building, depreciation-machinery, direct labor, direct materials, indirect labor, indirect materials, maintenance, power, supervisory salaries, taxes&insurance. For the last row in variable overhead costs (the column above) "fixed over head costs" the drop down options are: contribution margin, gross profit, income from operations, total fixed overhead costs, total variable overhead costs. The drop down options for the boxes UNDER "fixed overhead costs" are: depreciation-building, depreciation-machinery, direct labor, direct materials, indirect labor, indirect materials, maintenance, power, supervisory salaries, taxes&insurance. For the last box in fixed overhead costs ABOVE "total overhead costs" are: contribution margin, gross profit, income from operations, total fixed overhead costs, total variable overhead costs For the two rows UNDER "volume variance" the drop down options are: budgeted (flexible) overhead, standard overhead applied. For all the boxes under "favorable/ unfavorable the drop down options are: favorable, unfavorable, no variance all other boxes need numbers added please use the exact format in the pictures . Thank you !
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
4. Prepare a detailed
The drop down options for the box next to "expected production volume" and the box next to"production level achieved" are: 65%, 70%, 75%, 80%, 85%, 90%, 95%, 100% of capacity
the drop down options for the box next to "volume variance" are: favorable, unfavorable, no variance.
The drop down option for the boxes under "variable overhead costs" are:
For the last row in variable overhead costs (the column above) "fixed over head costs" the drop down options are: contribution margin, gross profit, income from operations, total fixed overhead costs, total variable overhead costs.
The drop down options for the boxes UNDER "fixed overhead costs" are: depreciation-building, depreciation-machinery, direct labor, direct materials, indirect labor, indirect materials, maintenance, power, supervisory salaries, taxes&insurance.
For the last box in fixed overhead costs ABOVE "total overhead costs" are: contribution margin, gross profit, income from operations, total fixed overhead costs, total variable overhead costs For the two rows UNDER "volume variance" the drop down options are: budgeted (flexible) overhead, standard overhead applied.
For all the boxes under "favorable/ unfavorable the drop down options are: favorable, unfavorable, no variance
all other boxes need numbers added
please use the exact format in the pictures . Thank you !
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