Straightforward coverage of manufacturing overhead, standard-costing system. The Brazil division of an American telecommunications company uses standard costing for its machine-paced production of telephone equipment. Data regarding production during June are as follows: $537,470 $7 per standard machine-hour $146,101 $136,000 Variable manufacturing overhead costs incurred Variable manufacturing overhead cost rate Fixed manufacturing overhead costs incurred Fixed manufacturing overhead costs budgeted Denominator level in machine-hours 68,000 1.2 66,500 Standard machine-hour allowed per unit of output Units of output Actual machine-hours used 75,700 Ending work-in-process inventory

Q: Q.How do managers plan for variable overhead costs?

A: The cost which is dependent upon the level of output and changes if the level of output fluctuates…

Q: At December 31, 2020, the available-for-sale debt portfolio for Zorro Foods Corp. is as follows:…

A: 1)  Prepare the adjusting entry at December 31, 2020, to report the portfolio at fair value:-…

Q: what are the possible causes of favourable Material usage variance

A: Introduction:- Standard costs are estimates of the actual costs in a company’s production process…

Q: Using more highly skilled direct laborers might affect which of the following variances a. variable…

A: The difference between the actual time taken to create a product and the time allocated for it is…

Q: What is the interpretation of the direct-material quantity variance?

A: Direct material quantity variance is a variance analysis tool for manufacturing companies. It shows…

Q: Which do you think is more important for controlling fixed overhead costs: the spending variance or…

A: (This is not a subjective matter of opinion but rather is based on accounting principles and theory…

Q: The materials price variance should be computed when materials are purchased. Group of answer…

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: what are the possible causes of adverse Material usage variance

A: The variation in material consumption is determined as the difference between the quantity of actual…

Q: Explain why a favorable sales-quantity variance occurs.

A: Explain the reason for the occurrence of favorable sales quantity variance:When actual sales exceed…

Q: The controllable variance measures a. operating results at more than normal capacity b. operating…

A: Standard costs are estimates of the actual costs in a company’s production processThen, the actual…

Q: Labour efficiency variance Fixed overhead price variance  Fixed overhead efficiency variance

A: Labour efficiency varianceLabour Efficiency Variance is the difference between the standard labour…

Q: Outline 2 potential causes for each of the material and labour variances

A: The distinction between the standard cost of direct materials indicated for fabricating and the real…

Q: Google monitors its fixed overhead. In an analysis of fixed overhead cost variances, what is the…

A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…

Q: Determine a detailed list of possible causes of any material, labour or fixed overhead cost…

A: For any manufacturing industry It is important to set standards for the various activities like…

Q: what is the Total factory overhead cost variance?

A: Cost variance is the variance which is measured by the company so that the decision and it can be…

Q: Question 4: Define the following:…

A: Variable cost refers to that cost which variate with the variations in the production or sales…

Q: When is the direct labor time variance favorable? A. when the actual quantity used is greater than…

A: Direct labor time is the time taken o produce a unit . when the standard time to make a unit is less…

Q: standard cost

A: Standard cost systems are cost accounting systems in which standard is set for each item of cost and…

Q: criticly identify the possible causes of labour and material variance

A: Labour Variances: 1. Unskilled or inefficient workers. 2. Unfavourable wage rates. 3. Unexpected…

Q: what are the possible causes of favourable Labour efficiency variance

A: The capacity to employ labor in a manner that is consistent with expectations is what the labor…

Q: What are some possible reasons for a material price variance?

A: The reason for material price variance has been shown below

Q: 2. Yellow Ltd, a food manufacturer, is reviewing its operation for March 2021. The company produces…

A: Variance analysis is very important technique of comparing budgeted costs with actual costs in order…

Q: How is the fixed overhead volume variance different from the other variances?

A: Variance:  Variance refers to the difference level in the actual cost incurred and standard cost.…

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.