Sampson Apparel Inc. incurred actual variable overhead expenses of P62,000 in the current year for the production of 10,000 units. Variable overhead was applied at a rate of P2.00 per direct labor hour and 3 direct labor hours were budgeted for each unit. The company used 29,000 direct labor hours for production. 5.Refer to the Sampson Apparel Inc. information above. What was Sampson's variable overhead spending variance? a. P4,000 U b. P4,000 F c. P2,000 U d. P2,000 F 6. Refer to the Sampson Apparel Inc. information above. What was Sampson's variable overhead efficiency variance? a. P4,000 U b. P4,000 F c. P2,000 U d. P2,000 F
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.
Sampson Apparel Inc. incurred actual variable
5.Refer to the Sampson Apparel Inc. information above. What was Sampson's variable overhead spending variance?
a. P4,000 U
b. P4,000 F
c. P2,000 U
d. P2,000 F
6. Refer to the Sampson Apparel Inc. information above. What was Sampson's variable overhead efficiency variance?
a. P4,000 U
b. P4,000 F
c. P2,000 U
d. P2,000 F
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