A company is examining its Manufacturing Overhead for the year. You have been asked to examine the overhead variance using both Two- and Three-Variance analyses. Using the information below, prepare a report containing both analyses for the company. Action River Company Annual Budget Units 100,000 D/L Hours 500,000 Variable OH 2$ 2$ 350,000 300,000 Fixed OH 50,000 Total OH 2$ Actuals for the Year Units 98,000 D/L Hours Variable OH Fixed OH Total OH 504,000 2$ 2$ 309,000 48,000 $. 357,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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A company is examining its Manufacturing Overhead for the year. You have been asked to examine the
overhead variance using both Two- and Three-Variance analyses. Using the information below, prepare a
report containing both analyses for the company.
Action River Company
Annual Budget
Units
100,000
D/L Hours
Variable OH
Fixed OH
500,000
$
300,000
2$
50,000
Total OH
24
350,000
Actuals for the Year
Units
98,000
504,000
D/L Hours
Variable OH
2$
309,000
Fixed OH
$
48,000
Total OH
357,000
Transcribed Image Text:A company is examining its Manufacturing Overhead for the year. You have been asked to examine the overhead variance using both Two- and Three-Variance analyses. Using the information below, prepare a report containing both analyses for the company. Action River Company Annual Budget Units 100,000 D/L Hours Variable OH Fixed OH 500,000 $ 300,000 2$ 50,000 Total OH 24 350,000 Actuals for the Year Units 98,000 504,000 D/L Hours Variable OH 2$ 309,000 Fixed OH $ 48,000 Total OH 357,000
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