Required: Calculate the following: Blank #1: Fixed overhead budget variance Blank #2: Is the fixed overhead budget variance favourable or unfavourable? (enter For U in the blank) Blank #3: Fixed overhead volume variance Blank #4: Is the fixed overhead volume variance favourable or unfavourable? (enter F or U in the blank) Blank #1 Blank # 2 Blank # 3 Blank # 4 A N

Q: (1) Compute the overhead volume variance. Indicate variance as favorable or unfavorable. (2) Compute…

A: Calculation of overhead volume  variance and controllable variance are as follows.An Overhead…

Q: Horizontal analysis is a technique for evaluating financial statement data a. for one period of time…

A: Horizontal analysis: The comparison of an item of a financial statement of one year against the same…

Q: Which of the following is FALSE regarding variances? O A favorable variance, when it occurred, are…

A: The method of costing used to determine deviations is referred to as standard costing. The standard…

Q: On a graph, the Total Variable costs line appears to be horizontal in nature. True False

A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…

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: The intercept (straight line) on a graph of the linear cost function represents ....... cost

A: The cost function depicts the costs that will be incurred at various levels of activity Cost…

Q: At the beginning of the year, you estimated the following - Production - 75,000 units Raw Material -…

A: Standard price = Estimated Raw material cost / Estimated units Raw material efficiency variance =…

Q: How are overhead variances useful in nonmanufacturing settings? Can you think of an example?

A: All overhead variances, even those incurred outside the manufacturing function, are undoubtedly…

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: 75,000 al - 270,000 pounds at a cost of $1,026,000 - 187,500 hours at a cost of $4,125,000 erhead -…

A: Ans. For Raw Material Price Variance we need to compare the price of raw material per unit between…

Q: Variances are computed by taking the difference between which of the following? Multiple Choice O…

A: Product costs are the costs that are directly related to the production of goods or services. Period…

Q: 1. What is the activity variance for the revenue? (Indicate the effect of each variance by selecting…

A: Variance analysis is one of the important technique of management accounting analysis, under which…

Q: 4.A scatter graph is used to test the assumption that the relationship between cost and…

A: Explanation and answer is given below,

Q: 7. Which of the following charts best represent total variable costs? For each chart, the line…

A: Total variable cost which increases when number of production units increases I.e changing of…

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: activity of 17,100 hours: Direct Materials (6 ft. x $5/ft) Direct Labor (1.6 hrs.x $10/hr)…

A: Standard Price = $10  Actual Production = 12,100  Standard hours  for actual Production  = actual…

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: A scatter graph is used to test the assumption that the relationship between cost and activity level…

A: There is a systematic relationship between costs and activity level. In accounting we see that the…

Q: Required information [The following information applies to the questions displayed below.] Manuel…

A: Total Overhead at 80% Capacity (a)        3,38,000 Total Direct Labour Hours at 80% Capacity (b)…

Q: Describe the procedure to compute the variance of return for a project?

A: Variance is ascertained as follows: The mean worth is dictated by including all the information…

Q: Variance is underapplied when: Select one: a. None of the options b. If actual overhead > applied…

A: The variance is the difference between standard and the actual data.

Q: 7. The formula for the materials quantity variance is A. (SQ × AP) - (SQ x SP). B. (AQ × AP) - (AQ -…

A: Direct materials Quantity variance is used for the comparing actual and standard materials used in…

Q: Define unfavourable variance.

A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

Q: What were the price and quantity variances for direct material, respectively? What were the rate…

A: 1. Compute the price and quantity variances for direct materials.

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.