Skizone Company's 4-Variance Analysis: Spending Variance Variable overhead Fixed overhead (a) $6400 F Efficiency Variance $18,000 U No variance Production- Volume Variance No variance $49,000 U If Skizone's combined 4-Variance Analysis shows an unfavorable spending variance of $2100, what is the fixed overhead spending variance (a)?
Skizone Company's 4-Variance Analysis: Spending Variance Variable overhead Fixed overhead (a) $6400 F Efficiency Variance $18,000 U No variance Production- Volume Variance No variance $49,000 U If Skizone's combined 4-Variance Analysis shows an unfavorable spending variance of $2100, what is the fixed overhead spending variance (a)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Concept explainers
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:Skizone Company's 4-Variance Analysis:
Spending
Variance
Variable
overhead
Fixed overhead (a)
$6400 F
$4300 unfavorable
$4300 favorable:
$8500 favorable
Efficiency
Variance
$8500 unfavorable
$18,000 U
No variance
If Skizone's combined 4-Variance Analysis shows an unfavorable spending variance of $2100, what
is the fixed overhead spending variance (a)?
Production-
Volume Variance
No variance
$49,000 U
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