GB Production Com pany uses a standard costing system. The following information pertains to 2011. Adual factory overhead costs (P16,500 is fixed) Adual direct labor costs (11,250 hours) Standard direct la bor for 5,500 un its: Standard hours allowed P40,125 P131,625 11,000 hours P12.00 Labor rate The fadory overhead rate is based on an activity level of 10,000 units. Standard cost data for 5,000 units is as follows Variable factory overhead Fixed factory overhead Total factory overhead P22,500 13,500 P36.000 P3,000.00 (U) P562.50 (U) P562.50 (F) P1,687.50 (F)

Q: Q.How do managers plan for variable overhead costs?

A: The cost which is dependent upon the level of output and changes if the level of output fluctuates…

Q: What is the variable manufacturing overhead rate variance?

A: Variable Manufacturing Rate Variance = php300 (Favourable) Refer step 2 for explanation

Q: Describe the difference between a direct materials efficiency variance and a variable manufacturing…

A: Variable Cost:The cost which fluctuates on the basis of the output level produced. The variable cost…

Q: Compute the net overhead variance (indicate over- or underapplied manufacturing overhead)

A: Overhead Variance is the deviation of actual overhead incurred from the standard overhead…

Q: Q.Discuss possible causes of the variable manufacturing overhead variances

A: Explain the possible causes for the variable manufacturing overhead variances. The possible causes…

Q: How do managers plan for variable overhead costs?

A: Variable Cost: The cost which fluctuates on the basis of the output level produced. The variable…

Q: c. Direct manufacturing labour price variance  d. Direct manufacturing labour efficiency variance…

A: Variance analysis is one of the important technique of management accounting analysis, under which…

Q: Which do you think is more important for controlling fixed overhead costs: the spending variance or…

A: (This is not a subjective matter of opinion but rather is based on accounting principles and theory…

Q: Input Cost/Block Direct materials 0.5 Ib. @ $12/lb. $ 6.00 Direct manufacturing labour 1.4 hours @…

A: Fixed overhead spending variance The calculation of fixed overhead spending variance is the actual…

Q: If variable manufacturing overhead is applied to production on the basis of direct laborhours and…

A: If variable manufacturing overhead is applied to production on the basis of direct labor hours and…

Q: Explain direct labour efficiency variance.

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: what is the Total factory overhead cost variance?

A: Cost variance is the variance which is measured by the company so that the decision and it can be…

Q: The following manufacturing costa data are available for Division 911: Work in proceas January 1,…

A: Manufacturing overhead: It is the indirect cost incurred as a part of manufacturing the products.…

Q: Use the following information to answer the next 2 question Standard machine hours per unit of…

A: Cost Variance - A cost variance is a difference between the cost that was actually incurred and the…

Q: MARISSA Co., the consultant of MARISOL Co. had summarized the following standard cost data extracted…

A: Budgeted hours = normal capacity x budgeted hours  per unit = 400 units x 5 hours = 2000 hours…

Q: What is an example of a company and product that uses variance analysis

A: Companies use variance analysis to compare its actual cost with its budgeted cost or standards set…

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making. 

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.