Homework Help is Here – Start Your Trial Now!
Business
Accounting
Exercise 9.16 Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours. (Practical capacity is 500,000 hours.) Annual budgeted overhead costs total $787,200, of which $556,800 is fixed overhead. A total of 119,400 units using 478,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $230,600, and actual fixed overhead costs were $556,250. Required: 1. Compute overhead variances using a two-variance analysis. Budget Variance $ - Select your answer- Favorable Unfavorableltem 2 Volume Variance $ Select your answer - FavorableUnfavorableltem 4 Spending Variance Efficiency Variance 2. Compute overhead variances using a three-variance analysis. $ Select your answer - Favorable Unfavorableltem 6 $ - Select your answer- FavorableUnfavorableltem 8 Volume Variance $ Select your answer - FavorableUnfavorable Item 10

Exercise 9.16 Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours. (Practical capacity is 500,000 hours.) Annual budgeted overhead costs total $787,200, of which $556,800 is fixed overhead. A total of 119,400 units using 478,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $230,600, and actual fixed overhead costs were $556,250. Required: 1. Compute overhead variances using a two-variance analysis. Budget Variance $ - Select your answer- Favorable Unfavorableltem 2 Volume Variance $ Select your answer - FavorableUnfavorableltem 4 Spending Variance Efficiency Variance 2. Compute overhead variances using a three-variance analysis. $ Select your answer - Favorable Unfavorableltem 6 $ - Select your answer- FavorableUnfavorableltem 8 Volume Variance $ Select your answer - FavorableUnfavorable Item 10

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

Exercise 9.16 Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours. (Practical capacity is 500,000 hours.) Annual budgeted overhead costs total $787,200, of which $556,800 is fixed overhead. A total of 119,400 units using 478,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $230,600, and actual fixed overhead costs were $556,250. Required: 1. Compute overhead variances using a two-variance analysis. Budget Variance $ - Select your answer- Favorable Unfavorableltem 2 Volume Variance $ Select your answer - FavorableUnfavorableltem 4 Spending Variance Efficiency Variance 2. Compute overhead variances using a three-variance analysis. $ Select your answer - Favorable Unfavorableltem 6 $ - Select your answer- FavorableUnfavorableltem 8 Volume Variance $ Select your answer - FavorableUnfavorable Item 10
Transcribed Image Text:Exercise 9.16 Overhead Variances, Two- And Three-Variance Analyses Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours. (Practical capacity is 500,000 hours.) Annual budgeted overhead costs total $787,200, of which $556,800 is fixed overhead. A total of 119,400 units using 478,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $230,600, and actual fixed overhead costs were $556,250. Required: 1. Compute overhead variances using a two-variance analysis. Budget Variance $ - Select your answer- Favorable Unfavorableltem 2 Volume Variance $ Select your answer - FavorableUnfavorableltem 4 Spending Variance Efficiency Variance 2. Compute overhead variances using a three-variance analysis. $ Select your answer - Favorable Unfavorableltem 6 $ - Select your answer- FavorableUnfavorableltem 8 Volume Variance $ Select your answer - FavorableUnfavorable Item 10
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS