The following information relates to Steele​ Manufacturing's overhead costs for the​ month:   Static budget variable overhead $35,900 Static budget fixed overhead $15,600 Static budget direct labor hours 15,400 hours Static budget number of units 5,500 units   Steele allocates variable manufacturing overhead to production based on standard direct labor hours.     Steele reported the following actual results for last​ month: actual variable​ overhead, $35,400​; actual fixed​ overhead, $15,400​; actual production of 5,400 units at 2.4 direct labor hours per unit. The standard direct labor time is 2.8 direct labor hours per unit.

Q: the actual amount was $350,000. Actual production for July was 25,000 units, and actual…

A:

Q: allowed for actual output of the period. During the recent year, the following data were collected:…

A: The main purpose of Standard costing is to compare your actual performance with these standards and…

Q: Happy Valley Pet Products uses a standard costing system that applies overhead to products based on…

A: Variance analysis is a type of method to  assess and examine the difference between estimated…

Q: Using the following budget data for Valley Corporation, which produces only one product, calculate…

A: A Pre-determined Overhead Rate is a projected ratio of overhead costs, which is determined at the…

Q: Crash Bang, Co. uses a standard cost system and provides the following information: Standards:…

A: Budgeted VOH /Budgeted Direct Labor Hours Standard VOH allocation rate  $  5,55,000.00/566 $…

Q: sheridan manufacturing company uses a standard cost system in accounting for the cost of its main…

A: The objective of the question is to calculate the variable overhead spending, quantity, and budget…

Q: Cholla Company’s standard fixed overhead rate is based on budgeted fixed manufacturing overhead of…

A: Fixed overhead spending variance is the difference between budgeted fixed overhead and actual fixed…

Q: The manufacturing overhead budget for Pina Colada Company contains the following items. Variable…

A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…

Q: Bramble Company's overhead rate was based on estimates of $180,000 for overhead costs and 18,000…

A: Variances are calculated in order to identify the gap between the actual performance and the…

Q: The following information relates to Modern, Inc.'s overhead costs for the month: Static budget…

A: Variance is a result of the difference between the actual and the planned results. Volume variance…

Q: Shamrock Manufacturing Company uses a standard cost system in accounting for the cost of its main…

A: The objective of the question is to calculate the direct materials price, usage, and budget…

Q: A company uses a standard costing system and applies overhead to production based on direct…

A: Fixed overhead budget variance = Budgeted fixed overhead - Actual fixed overhead

Q: Megan, Incorporated uses the following standard costs per unit for one of its products: Direct labor…

A: Budgeted fixed overhead is given as 120,000.Actual fixed overhead costs reported are 122,000. Fixed…

Q: ig over Variable costs Indirect materials Indirect labor Maintenance expense Manufacturing supplies…

A: The manufacturing overhead budget is prepared to compare the indirect costs of production. The…

Q: Larson Manufacturing uses a standard cost system. The direct labor cost standard is $11.00 direct…

A: Labour Rate Variance = (Standard Rate – Actual Rate) X Actual Hours Labour Efficiency Variance = =…

Q: Reddy Corporation has collected the following data for the month of June: Actual total factory…

A: Formula: Variable overhead efficiency variance = ( Standard hours - Actual hours ) x Standard rate

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Labor usage variance= Actual hours * Standard rate per hour - Actual hours * Actual rate per hou

Q: ard machine-hours (MHs). The company has provided the following data for the most recent month:

A: The total cost of production of a good comprises of the total fixed cost of production and the total…

Q: The manufacturing overhead budget for Pina Colada Company contains the following items. Variable…

A:

Q: Create a new standard cost card that separates the variable manufacturing overhead per unit and the…

A: The standard cost is the cost which is used by the company to estimate the costs which has to be…

Q: Robinwood Fixtures manufactures two products, K4 and X7. The company prepares its master budget on…

A: In budgeting or management accounting, variance analysis is the examination of differences between…

Q: The following labor standards have been established for a particular product: Standard labor-hours…

A: Direct Labor Price Variance: Direct labor price variance is the difference between the actual price…

Q: Acme Company uses a standard cost accounting system and applies variable manufacturing overhead at a…

A: Standard machine hours for actual production = Actual production units * Standard machine hours per…

Q: ariable manufacturing overhead costs Fixed manufacturing overhead costs Normal production level in…

A: The term "overhead" describes the costs incurred while a business is in operation. Any fixed,…

Q: Declining Balance

A: Declining balance method is an accelerated depreciation system of recording larger depreciation…

Q: Norwall Company's budgeted variable manufacturing overhead cost is $1.05 per machine-hour and its…

A: Variance arises when the actual costs  differ from the standard costs. The results are favorable…

Q: Shamrock Manufacturing Company uses a standard cost system in accounting for the cost of its main…

A: Variance analysisThe process of analyzing the actual performance against the budgeted values is…

Q: Julia Company uses a standard cost system in which manufacturing overhead is applied to units of…

A: (1) Calculation of Predetermined variable and fixed manufacturing overhead rates for the…

Q: Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for…

A: A Factory Overhead Cost Variance Report is a document that analyzes the differences between the…

Q: Crash Bang, Co. uses a standard cost system and provides the following information: Standards:…

A: Variable overhead allocation rate.Variable overhead allocation rate is the base at which the costs…

Q: The following information relates to Steele Manufacturing's overhead costs for the month: $35,600…

A: In the business organizations, the benchmark is already established, and the actual performance is…

Q: Wharton Tooling uses a standard cost system to account for the costs of its one product Standard…

A: Variance arises when the actual costs  differ from the standard costs. The results are favorable…

Q: Anthon Corporation has provided the following information regarding last month's activities. 10,920…

A: Variance analysisIt is the study of deviations between actual behavior and budgeted or planned…

Q: Tat Manufacturing Corporation uses a standard cost system with machine-hours as the activity base…

A: Computation of the variable overhead efficiency variance is as follows: Formula: Variable overhead…

Q: Terrell Inc. has provided the following data concerning one of the products in its standard cost…

A: The variance is the difference between the actual and budgeted production costs. The variable…

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.