Required information [The following information applies to the questions displayed below.] AirPro Corporation reports the following for this period. Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level $ 28,325 $ 32,550 $ 2.10 per unit $ 12,700 12,700 units 10,500 units Compute the (a) total overhead variance and (b) controllable variance and identify each variance as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal places.) Flexible Budget- LFlexible Budget at Variable Amount per Unit Total Fixed Cost 12.700 units 10,500 units Total flexible budget Controllable Overhead Variance Controllable overhead variance
Required information [The following information applies to the questions displayed below.] AirPro Corporation reports the following for this period. Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted fixed overhead Predicted activity level Actual activity level $ 28,325 $ 32,550 $ 2.10 per unit $ 12,700 12,700 units 10,500 units Compute the (a) total overhead variance and (b) controllable variance and identify each variance as favorable or unfavorable. (Round "Variable amount per unit" to 2 decimal places.) Flexible Budget- LFlexible Budget at Variable Amount per Unit Total Fixed Cost 12.700 units 10,500 units Total flexible budget Controllable Overhead Variance Controllable overhead variance
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter10: Standard Costing And Variance Analysis
Section: Chapter Questions
Problem 42BEB: Fixed Overhead Spending and Volume Variances, Columnar and Formula Approaches Corey Company provided...
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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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