Overhead information for Wilts Company is presented. Actual fixed overhead, $13,825 Actual variable overhead, $8,000 Budgeted fixed overhead, $14,000 Variable overhead rate, $1.00 Fixed overhead rate, $1.75 Normal capacity hours, 8,000 Standard hours allowed, 7,900 Determine the overhead controllable and the overhead volume variances. Indicate whether they are favorable or unfavorable. Overhead controllable variance $ Overhead volume variance $

Overhead information for Wilts Company is presented. Actual fixed overhead, $13,825 Actual variable overhead, $8,000 Budgeted fixed overhead, $14,000 Variable overhead rate, $1.00 Fixed overhead rate, $1.75 Normal capacity hours, 8,000 Standard hours allowed, 7,900 Determine the overhead controllable and the overhead volume variances. Indicate whether they are favorable or unfavorable. Overhead controllable variance $ Overhead volume variance $

Name: Overhead information for Wilts Company is presented.Actual fixed over
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Description: Overhead information for Wilts Company is presented.Actual fixed overhead, $13,825Actual variable overhead, $8,000Budgeted fixed overhead, $14,000Variable overhead rate, $1.00Fixed overhead rate, $1.75Normal capacity hours, 8,000Standard hours allow

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

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Question

Overhead information for Wilts Company is presented.
Actual fixed overhead, $13,825
Actual variable overhead, $8,000
Budgeted fixed overhead, $14,000
Variable overhead rate, $1.00
Fixed overhead rate, $1.75
Normal capacity hours, 8,000
Standard hours allowed, 7,900
Determine the overhead controllable and the overhead volume variances. Indicate whether they are
favorable or unfavorable.
Overhead controllable variance
$
Overhead volume variance
$
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