A company using standard costing system presents the following information for the budget 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; (if) Variable overheads spending variance; (ii) Variable overheads efficiency variance; (iv) Fixed overheads cost variance; (v) Fixed overheads expenditure variance; (vi) Fixed overheads volume variance;
A company using standard costing system presents the following information for the budget 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; (if) Variable overheads spending variance; (ii) Variable overheads efficiency variance; (iv) Fixed overheads cost variance; (v) Fixed overheads expenditure variance; (vi) Fixed overheads volume variance;
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please answer part iv v vi
![A company using standard costing system presents the following information for the budget
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.
%3D
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;
(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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb057a43f-06ba-4755-b4d6-0b239aecda39%2F5ee5b803-4ef3-46cd-982b-5be813ac3eeb%2F9fwq1z7d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company using standard costing system presents the following information for the budget
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.
%3D
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;
(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.
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