Actual variable overhead $10,000 Budgeted variable overhead S12,000 Budgeted production Actual production 500 units 450 units Actual hours 200 Standard time for 1 unit 30 minutes Among the given options, determine variable overhead efficiency variance. a. $1,200 favorable. b. $1,200 unfavorable c. $1,250 favorable d. $2,400 favorable

Actual variable overhead $10,000 Budgeted variable overhead S12,000 Budgeted production Actual production 500 units 450 units Actual hours 200 Standard time for 1 unit 30 minutes Among the given options, determine variable overhead efficiency variance. a. $1,200 favorable. b. $1,200 unfavorable c. $1,250 favorable d. $2,400 favorable

Name: Actual variable overhead$10,000Budgeted variable overhead $12,000Budg
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Description: Actual variable overhead$10,000Budgeted variable overhead $12,000Budgeted productionActual production500 units450 unitsActual hours200Standard time for 1 unit30 minutesAmong the given options, determine variable overhead efficiency variance.a. $1,20

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 7CE: Variances Refer to Cornerstone Exercise 9.6. Required: 1. Calculate the variable overhead spending...

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Concept explainers

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.

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Question

Actual variable overhead
$10,000
Budgeted variable overhead $12,000
Budgeted production
Actual production
500 units
450 units
Actual hours
200
Standard time for 1 unit
30 minutes
Among the given options, determine variable overhead efficiency variance.
a. $1,200 favorable.
b. $1,200 unfavorable
c. $1,250 favorable
d. $2,400 favorable

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Using the information provided will this produce a favorable or unfavorable Variable Overhead Efficiency Variance? Percent of capacity Direct labor hours Units of output Variable overhead Fixed overhead Total overhead The standard for hours is 2,000. 100% 2,500 1,000 $7,000 $ 6,000 $13,000
Relevant information for product A follows: Actual variable overhead cost per hour Standards variable overhead cost per hour Actual hours Standard hours $8,00 $7.50 O $2,250 unfavorable. O $4,000 unfavorable. O $2,250 favorable. O $4,000 favorable. 4,500 5,000 What was the variable overhead spending variance for product A?
Actual variable overhead $10,000 Budgeted variable overhead $12,000 Budgeted production Actual production Actual hours 500units 450 units 200 Standard time for 1 unit 30minutes Among the given options, determine variable overhead efficiency variance. a. $1,200 favorable. b. $1.200 unfavorable c. $1,250 favorable d. $2.400 favorable
Standard Costing
Question Content Area The following data relate to direct labor costs for the current period: Line Item Description Value Standard costs 7,000 hours at $11.80 Actual costs 6,300 hours at $10.80 The direct labor rate variance is a. $14,560 unfavorable b. $6,300 favorable c. $14,560 favorable d. $8,260 favorable
Problem 2. Each of the following independent situations relates to direct labor. Fill in the blanks. A в C Units produced 4,000 1,900 3,000 Actual hours worked Standard hours for 8,400 2,000 6,000 production achieved Standard hours per unit Standard rate per hour Actual labor cost 0.5 P10 3 P12 P12 P83,600 P24,500 Rate variance P310U P900U P300F Efficiency variance P2,000U P1,800F P800 U
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Variable overhead efficiency variance
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Standard Rate Standard per Hour $ 17.00 Hours Cost 18 minutes $ 5.10 During August, 5,750 hours of direct labor time were needed to make 20,000 units of the Jogging Mate. The direct labor cost totaled $102,350 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 20,000 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 20,000 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4 per direct labor-hour. During August, the company incurred $21,850 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
Data Table AC × AQ SC × AQ SC × SQ $0.65 per pounds $0.30 per pounds $0.30 per pound × × × 7,600 pounds 7,600 pounds 7,200 pounds $4,940 $2,280 $2,160 Cost Efficiency Variance Variance $2,660 U $120 U . Record Smithson's direct materials journal entries. Assume purchases were made on account. 2. Explain what management will do with this variance information.
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Variances Spending Efficiency Volume Variable manufacturing overhead $ 7,500 F $30,000 U (B) Fixed manufacturing overhead $28,000 U (A) $80,000 U In a combined 3-variance analysis, the total spending variance would be ________. a. $20,500 U b. $22,500 U c. $37,500 F d. $20,500 F