A company using standard costing system presents the following information for the budgetperiod:Budgeted variable overheads = Rs. 8,00,000Budgeted fixed overheads = 5,00,000Overheads are recovered on the basis of standard machine hours. The company had budgeted for 1,00,000machine hours for the year.During the budget period the company used 1,10,000 machine hours while it should have used 95,.000machine hours for actual output.%3DActual variable overheads Rs. 8,00,000Actual fixed overheads Rs. 4,70,000.Calculate the following variances:() Variable overheads cost variance;(i) Variable overheads spending variance;(iii) Variable overheads efficiency variance;(iv) Fixed overheads cost variance;(v) Fixed overheads expenditure variance;(vi) Fixed overheads volume variance;(vii) Fixed overheads efficiency variance;(vii) Fixed overheads capacity variance.

Name: A company using standard costing system presents the following inform
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Description: A company using standard costing system presents the following information for the budgetperiod:Budgeted variable overheads = Rs. 8,00,000Budgeted fixed overheads = 5,00,000Overheads are recovered on the basis of standard machine hours. The company

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period: Budgeted variable overheads = Rs. 8,00,000 Budgeted fixed overheads = 5,00,000 Overheads are recovered on the basis of standard machine hours. The company had budgeted for 1,00,000 machine hours for the year. During the budget period the company used 1,10,000 machine hours while it should have used 95,.000 machine hours for actual output. Actual variable overheads Rs. 8,00,000 Actual fixed overheads Rs. 4,70,000. Calculate the following variances: () Variable overheads cost variance; (i) Variable overheads spending variance; (iii) Variable overheads efficiency variance; %3D

period: Budgeted variable overheads = Rs. 8,00,000 Budgeted fixed overheads = 5,00,000 Overheads are recovered on the basis of standard machine hours. The company had budgeted for 1,00,000 machine hours for the year. During the budget period the company used 1,10,000 machine hours while it should have used 95,.000 machine hours for actual output. Actual variable overheads Rs. 8,00,000 Actual fixed overheads Rs. 4,70,000. Calculate the following variances: () Variable overheads cost variance; (i) Variable overheads spending variance; (iii) Variable overheads efficiency variance; %3D

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 13CE: Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead...

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