Rondell Company uses a standard cost system. Indirect costs were budgeted at $190,000 plus $12 per direct labour hour. The overhead rate is based on 9,500 hours. Actual results were: Standard direct labour hours allowed Actual direct labour hours Fixed overhead Variable overhead 8,520 9,500 $175,000 $170,500 Calculate the fixed overhead production volume variance. Fixed overhead production volume variance Variable overhead spending variance Calculate the variable overhead spending variance. $ $ Calculate the variable overhead efficiency variance. Variable overhead efficiency variance $ + +
Rondell Company uses a standard cost system. Indirect costs were budgeted at $190,000 plus $12 per direct labour hour. The overhead rate is based on 9,500 hours. Actual results were: Standard direct labour hours allowed Actual direct labour hours Fixed overhead Variable overhead 8,520 9,500 $175,000 $170,500 Calculate the fixed overhead production volume variance. Fixed overhead production volume variance Variable overhead spending variance Calculate the variable overhead spending variance. $ $ Calculate the variable overhead efficiency variance. Variable overhead efficiency variance $ + +
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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Transcribed Image Text:Calculate the over- or underapplied overhead.
Overhead
$
+
Transcribed Image Text:Question 24
Rondell Company uses a standard cost system. Indirect costs were budgeted at $190,000 plus $12 per direct labour hour. The overhead rate is based
on 9,500 hours. Actual results were:
Standard direct labour hours allowed
Actual direct labour hours
Fixed overhead
Variable overhead
8,520
9,500
Calculate the fixed overhead production volume variance.
$175,000
$170,500
Fixed overhead production volume variance $
Variable overhead spending variance
Calculate the variable overhead spending variance.
Variable overhead efficiency variance
Calculate the variable overhead efficiency variance.
#
+
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