ABC Co. applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 13,000 Actual variable overhead incurred: $68,700 Actual machine hours worked: 18,318 Standard variable overhead cost per machine hour: $4.30 If ABC Co. estimates 1.30 hours to manufacture a completed unit, the company's variable-overhead spending variance is: Enter your response rounded to the nearest whole number
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.
ABC Co. applies
Actual units produced: 13,000
Actual variable overhead incurred: $68,700
Actual machine hours worked: 18,318
Standard variable overhead cost per machine hour: $4.30
If ABC Co. estimates 1.30 hours to manufacture a completed unit, the company's variable-overhead spending variance is:
Enter your response rounded to the nearest whole number
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