Which of the following statements about fixed overhead variances isFALSE?O The budget variance represents the difference between the original budgetedfixed overhead cost and the applied fixed overhead cost during a period.O An unfavorable volume variance means that a firm's production facilities wereunder-utilized by producing less units of products than budgeted.O The volume variance is a measure of facility utilization.O Fixed overhead variances consist of a budget variance and a volume variance.Ne:Previous

Name: Which of the following statements about fixed overhead variances isFA
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Which of the following statements about fixed overhead variances isFALSE?O The budget variance represents the difference between the original budgetedfixed overhead cost and the applied fixed overhead cost during a period.O An unfavorable volume var

The right answer is option d . Fixed overhead variances consists of a budget and a volume variances

Answered: ked overhead variances is e between the…

Business

Accounting

ked overhead variances is e between the original budgete

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: When using a standard cost system what term is used to denote that the actual cost is less than the…

A: Standard cost is calculated using estimated amounts. If the actual cost is less than the standard…

Q: When using a standard cost system what term refers to the differences between actual and standard…

A: Difference of actual and standard cost is measured to calculate the variance. The variances of cost…

Q: Explain why a favorable sales-quantity variance occurs.

A: Explain the reason for the occurrence of favorable sales quantity variance:When actual sales exceed…

Q: The controllable variance measures a. operating results at more than normal capacity b. operating…

A: Standard costs are estimates of the actual costs in a company’s production processThen, the actual…

Q: Labour efficiency variance Fixed overhead price variance Fixed overhead efficiency variance

A: Labour efficiency varianceLabour Efficiency Variance is the difference between the standard labour…

Q: 1. How is the flexible budget used within the variance analysis system to evaluate effectiveness and…

A: 1) Flexible budget refers to a budget that flexes with change in volume or change in activity. It is…

Q: Fixed overhead volume variance is a flexible budget variance. O True False

A: Fixed overheads are those indirect costs which will not change with change in activity level. These…

Q: rd allocation base C. actual and standard overhead rates D. actual units and actual overhead rates

A: Given: To explain the correct option with the given as,

Q: following information applies to the questions displayed below.] ro Corporation reports the…

A: Total overhead refers to the sum value of total expenses that are expected to be arising out of all…

Q: Of the following pairs of variances found in a flexible budget report, which pair is most likely to…

A: Variance in simple terms means difference or change. In costing variance refers to the difference…

Q: Direct Materials Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take…

A: Material cost variance: Material cost variance is the difference between standard cost of material…

Q: cost variance

A: Variance analysis plays a key role in the functioning of any company. It lets you identify key areas…

Q: Variance percentage is calculated by dividing the choose your answer... by the choose your answer...

A: Variation refers to the difference i.e. the difference between the current amounts with the budgeted…

Q: When analyzing an organization's budget using 2-variance analysis, the 2 elements used are volume…

A: The correct answer is: b. price varianceA 2-variance study of an organization's budget includes two…

Q: Compare and contrast a flexible budget and a static budget

A: Budgeting is one of the essential tool that helps to plan an organisation to plan its costs…

Q: The amount of the activity variance for revenue What is the spending variance for the cost of…

A: Lets understand the basics.Activity variance for revenue is a variance between the planned revenue…

Q: Parallel Enterprises has collected the following data on one of its products. During the period the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: When is the direct labor time variance favorable? A. when the actual quantity used is greater than…

A: Direct labor time is the time taken o produce a unit . when the standard time to make a unit is less…

Q: Give an example of a Direct Material Price Variance with figures and calculate the variance

A: Direct Material Price Variance is the difference between actual material cost and standard cost of…

Q: Hi the volume variance portion is missing

A: A volume variance is the difference between the actual quantity sold or consumed and the budgeted…

Q: When is the direcet labor time variance unfavorable? A. when the actual quantity used is greater…

A: Direct Labor Rate Variance: The difference between the actual cost of direct labor and the standard…

Concept explainers

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.

Topic Video

Question

Which of the following statements about fixed overhead variances is
FALSE?
O The budget variance represents the difference between the original budgeted
fixed overhead cost and the applied fixed overhead cost during a period.
O An unfavorable volume variance means that a firm's production facilities were
under-utilized by producing less units of products than budgeted.
O The volume variance is a measure of facility utilization.
O Fixed overhead variances consist of a budget variance and a volume variance.
Ne:
Previous

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

pls answer the questions
iv) Labour rate variance v) Labour efficiency variance vi) Overhead variances (both) d.Comment on your calculations produced in c above.
How do you find the standard quantity for efficiency variance?
Which one is the correct answer?
Total variance in variance analysis compares ● Flexible budget and actual outcome Static budget and flexible budget Flexible budget and static outcome Static budget and actual outcome
The variable overhead efficiency variance is computed and interpreted. a) the same as; the same as b) the same as; differently than c) differently than; the same as d) differently than; differently than the direct-cost efficiency variance.
At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material - 270,000 pounds at a cost of $1,026,000 Direct Labor - 187,500 hours at a cost of $4,125,000 Variable Overhead - 135,000 machine hours at a cost of $567,000 Fixed Overhead - $900,000 At the end of year, the actual results were as follows - Production - 73,000 units Raw Material - 265,720 pounds purchased and used at a cost of $1,036,308 Direct Labor - 179,580 hours at a cost of $3,968,718 Variable Overhead - 133,590 machine hours at a cost of $558,406.20 Fixed Overhead - $891,000
List the fixed overhead variances, and briefly describe each.
in preparing variance analysis for both variable overhead and fixed overhead costs, both include spending variances