Overhead Vanances, Two- And Three-Vaniance Analyses Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 122,000 units requiring 488,000 direct labor hours. (Practical capacity is 508,000 hours.) Annual budgeted overhead costs total $741,760, of which $541,680 is foxed overhead. A total of 119,100 units using 486,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $241,700, and actual fixed overhead costs were $556,050. Required: 1. Compute overhead variances using a two-variance analysis. Budget Variance Volume Variance 2. Compute overhead variances using a three-variance analysis. Spending Variance Efficiency Variance Volume Variance

Overhead Vanances, Two- And Three-Vaniance Analyses Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 122,000 units requiring 488,000 direct labor hours. (Practical capacity is 508,000 hours.) Annual budgeted overhead costs total $741,760, of which $541,680 is foxed overhead. A total of 119,100 units using 486,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $241,700, and actual fixed overhead costs were $556,050. Required: 1. Compute overhead variances using a two-variance analysis. Budget Variance Volume Variance 2. Compute overhead variances using a three-variance analysis. Spending Variance Efficiency Variance Volume Variance

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Description: Overhead Variances, Two- And Three-Variance AnalysesOerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 122,000 units requiring 488,000 di

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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