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)

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A: Absorption costing is an costing method where all the manufacturing cost related with production are…

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…

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Q: Hardin Company has the following information available for the current year:   Standard:…

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Q: Test III. Show your complete solution: Fill in the blanks: Direct Material Direct Labor Standard…

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

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

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

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

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Q: From the above information, you are required to compute :-  a) Fixed overhead cost variance  b)…

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

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

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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…

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

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Q: The standard variable overhead costs budget for CTF of 800 units with detail information as follows:…

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Q: Adams Company established a predetermined variable overhead cost rate at S10.00 per direct labor…

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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: DIRECT LABOR DIRECT MATERIAL Standard price or rate per unit of input Standard quantity per unit of…

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Q: Q.No.2     The standard and actual cost data of M/s. ABC Company are as follows:…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Direct Material Direct Labor $15 per lb Standard price or rate per unit of input Standard quantity…

A: 1. Direct material price variance = ( Standard rate - Actual rate ) x Actual quantity of 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…

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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…

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

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

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

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Q: The direct-material quantity variance is:

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

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

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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.