Compute the variable overhead rate variances for indirect labor for November. b. Compute the variable overhead rate variances for power for November. c. Compute the variable overhead efficiency variances for indirect labor for November. d. Compute the variable overhead efficiency variances for power for November.
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.
| The following data for November have been provided by Genghis Corporation, a producer of precision drills for oil exploration: | ||
| Budgeted production | 4,600 | drills |
| Standard machine-hours per drill | 7.5 | machine-hours |
| Standard indirect labor | $10.00 | per machine-hour |
| Standard power | $3.10 | per machine-hour |
| Actual production | 5,100 | drills |
| Actual machine-hours | 35,660 | machine-hours |
| Actual indirect labor | $370,784 | |
| Actual power | $107,450 | |
| Required: Show your work. | ||
| a. Compute the variable |
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| b. Compute the variable overhead rate variances for power for November. | ||
| c. Compute the variable overhead efficiency variances for indirect labor for November. | ||
| d. Compute the variable overhead efficiency variances for power for November. | ||
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Indicate whether each of the variances is favorable (F) or unfavorable (U). Input all amounts as positive values. answer all with all work answer all answer all answer all with full work please |
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