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

Q: Factory overhead is applied at a rate of $9 per labor hour, of which $6 is variable. The actual…

A: controllable variance is the difference between the actual Variable overhead and the standard…

Q: John Richardson is the manufacturing production supervisor for Benson Tool Works, a company that…

A: A flexible budget is one which adjusts with changes in volume. Under flexible budget, variable cost…

Q: Pandora Hardwood Products uses standard costs in a process cost system. At the end of the current…

A: A budget is a tool to predetermine estimated revenue and estimated expenses. Every organization…

Q: Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and…

A: The variance is the difference between the standard and actual production costs. The variance can be…

Q: Given the following information, what is the Direct Labor Spending Variance? Actual Flexible Master…

A: $9,680 F Direct Labor Cost  Actual Result = $95,420 Flexible Budget = $105,100 Master Budget =…

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.