SouthCo planned to use $35 of variable overhead per unit produced, but in the most recent period, it actually used $33 of variable overhead per unit produced. During this same period, the company planned to produce 100 units in 120 hours but actually produced 100 units in 150 hours. Calculate the variable overhead rate variance, the variable overhead efficiency variance, and the total variable overhead cost variance and complete the diagram. Please make sure your final answer(s) are accurate to the nearest whole number. Box 1 Box 2 Box 3 (Select one) x (Select one) (Select one) x (Select one) (Select one) x (Select one) Box 4 Variable Overhead Rate Variance (Select one) Box 6 Total Variable Overhead Cost Variance Box 5 Variable Overhead Efficiency Variance (Select one)

SouthCo planned to use $35 of variable overhead per unit produced, but in the most recent period, it actually used $33 of variable overhead per unit produced. During this same period, the company planned to produce 100 units in 120 hours but actually produced 100 units in 150 hours. Calculate the variable overhead rate variance, the variable overhead efficiency variance, and the total variable overhead cost variance and complete the diagram. Please make sure your final answer(s) are accurate to the nearest whole number. Box 1 Box 2 Box 3 (Select one) x (Select one) (Select one) x (Select one) (Select one) x (Select one) Box 4 Variable Overhead Rate Variance (Select one) Box 6 Total Variable Overhead Cost Variance Box 5 Variable Overhead Efficiency Variance (Select one)

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Description: SouthCo planned to use $35 of variable overhead per unit produced, but in the most recent period, it actually used $33 of variable overhead per unit produced. During this same period, the company planned toproduce 100 units in 120 hours but actually

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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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Question

SouthCo planned to use $35 of variable overhead per unit produced, but in the most recent period, it actually used $33 of variable overhead per unit produced. During this same period, the company planned to
produce 100 units in 120 hours but actually produced 100 units in 150 hours.
Calculate the variable overhead rate variance, the variable overhead efficiency variance, and the total variable overhead cost variance and complete the diagram. Please make sure your final answer(s) are
accurate to the nearest whole number.
Box 1
Box 2
Box 3
(Select one) x (Select one)
(Select one) x (Select one)
(Select one) x (Select one)
Box 4
Variable Overhead
Rate Variance
(Select one)
Box 6
Total Variable Overhead
Cost Variance
(Select one)
Box 5
Variable Overhead
Efficiency Variance
(Select one)

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