Formidable Company collected the following information: Standard costs per unit:   Variable overhead 4 machine hours @ $6 per machine hour Fixed overhead 4 machine hours @ $10 per machine hour     Actual output 20,000 units Denominator (normal capacity) output 21,000 units Actual machine hours 79,000 machine hours Actual variable overhead cost $540,000 Actual fixed overhead cost $810,000 Using the two variance method, what is the volume variance? a.$6,000 (F) b.$40,000 (F) c.$40,000 (U) d.$6,000 (U)

Q: Titus Company produced 6,500 units of a product that required 4.50 standard hours per unit. The…

A:

Q: Manuel Company predicts it will operate at 80% of its productive capacity. Its overhead allocation…

A:

Q: The standard cost of direct materials is £4 per kg and the standard quantity 2kg per unit of output.…

A: Direct material price variance: It implies to a difference between the standard or estimated cost of…

Q: Ben mean company produces a product that requires 4 standard hours per unit at a standard hourly…

A: Given, Actual rate per hour = $11.85 Standard rate per hour = $12 Actual hours = 58,000 hours

Q: Assume the following: • The standard price per pound is $2.00. • The standard quantity of pounds…

A: DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…

Q: A given work package has a planned value( (PV) of $10,000, an earned value (EV) of $9,000, and an…

A: To determine which statement is not true, let's calculate the Cost Variance (CV), Schedule Variance…

Q: llowing its products. Direct materials standard (3 pounds @ $3 per pound) Actual direct materials…

A: The variance is the difference between the standard and actual cost data. The variance can be…

Q: The following information is available for Sheffield’s Hot Dogs: Actual production   11,820…

A: Calculate the actual overhead rate as follows: Calculate standard hours and actual hours worked as…

Q: Good Deal​, Inc. uses a standard cost system and provides the following information. Good Deal…

A: Standard costing in simple terms can be defined as a system in which the standard costs and revenues…

Q: A company uses 4,690 kilograms of materials and exceeds the standard by 690 kilograms. The quantity…

A: Material quantity variance is that part of material cost variance which is due to the difference…

Q: Enter a favorable variance as a negative number. Round your answer to the nearest dollar. $…

A: Given information is: Titus Company produced 3,200 units of a product that required 3.243 standard…

Q: Calculate the change in activity using the information given below.   Description…

A: A cost can be either variable or fixed. Variable costs are those costs that changes when there is a…

Q: The standard direct labour cost of product C is as follows: Three hours of skilled labour at £4 per…

A: Formula: Direct labour total variance = Actual cost - Standard cost

Q: The Russell Company provides the following standard cost data per unit of product: Direct material…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: The standard number of hours that should have been worked for the output attained is 10,000 direct…

A: Variance analysis is defined as the procedure followed by the management to study the deviations…

Q: The following information is available for Marigold’s Hot Dogs: Actual production   11,760 packages…

A: Standard costing is used to compare the budgeted data with the actual results for better managerial…

Q: A company reports the following for one of its products. Direct materials standard (4 pounds @ $3…

A: Lets understand the basics. Material price variance is a variance between the rate at which material…

Q: The Landrum Company provides the following standard cost data per unit of product Variable overhead…

A: The production costs which varies depending upon the variation in production output termed as…

Q: 6. A manufacturer planned to use $78 of variable overhead per unit produced, but in the most recent…

A: $1,080 FExplanation:The difference between an expense's actual and anticipated (or budgeted) amounts…

Q: The overhead volume variance of Modern Art, Inc. is $80,600 favorable. It indicates:

A: The overhead volume variance is a measure used in cost accounting to quantify the difference between…

Q: productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base…

A: The overhead rate is calculated as estimated overhead cost divided by estimated base activity. The…

Q: ume the following information for one of a company’s variable expenses:  The activity variance is…

A: Answer : Activity variance = (Planned level of activity - Actual level of activity) * Variable…

Q: he standard costs and actual costs for direct materials for the manufacture of 2,800 actual units of…

A: Variance analysis is a type of analysis that is used to distinguish between actual and planned…

Q: What is the amount of the Factory OH Controllable Variance, given the following info: Actual…

A: Controllable Variance = Actual factory overhead – Standard overhead where, Standard overhead =…

Q: The Company has collected the following data for one its line of products: Direct materials…

A: Variance refers to a change between the expected value and the actual result. This term is usually…

Q: 5. Thorne Company has the following information available for the past year. They use machine hours…

A: 2,250 UExplanation:Variable OH Efficiency Variance = (Actual Hours - Standard Hours) x Standard…

Q: The Russell Company provides the following standard cost data per unit of product:           Direct…

A: In This Numerical has Covered the Concept Of Standard Costing.

Q: The following information is available for Bonita’s Hot Dogs: Actual production   11,090 packages…

A: Working Notes: 1. Standard variable overhead rate = $4 2. Actual variable overhead costs =$ 53,090…

Q: The following information is available for Bramble's Hot Dogs: Actual production 11,090 packages…

A: Answer) Calculation of Variable Overhead Rate variance Variable overhead rate variance = (Standard…

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.