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Three OH variances Berlin Ltd. uses a combined overhead rate of $2.90 per machine hour to apply overhead to products. The rate was developed at an annual expected capacity of 211,200 machine hours; each unit of product requires two machine hours to produce. At 211,200 machine hours, expected fixed overhead for Munich Ltd. Is $200,640. During November, the company produced 9,568 units and used 19,760 machine hours. Actual variable overhead for the month was $37,680 and fixed overhead was $16,000. Calculate the overhead spending, efficiency, and volume variances for November. Note: Do not use negative signs with your answers. Note: Round your answers to the nearest whole dollar. OH Spending Variance Actual OH Budget at Actual = OH Spending Variance OH Efficiency Variance Budget at Actual Budget at Standard = OH Efficiency Variance Volume Variance Budget at Standard Applied OH = Volume Variance $

Three OH variances Berlin Ltd. uses a combined overhead rate of $2.90 per machine hour to apply overhead to products. The rate was developed at an annual expected capacity of 211,200 machine hours; each unit of product requires two machine hours to produce. At 211,200 machine hours, expected fixed overhead for Munich Ltd. Is $200,640. During November, the company produced 9,568 units and used 19,760 machine hours. Actual variable overhead for the month was $37,680 and fixed overhead was $16,000. Calculate the overhead spending, efficiency, and volume variances for November. Note: Do not use negative signs with your answers. Note: Round your answers to the nearest whole dollar. OH Spending Variance Actual OH Budget at Actual = OH Spending Variance OH Efficiency Variance Budget at Actual Budget at Standard = OH Efficiency Variance Volume Variance Budget at Standard Applied OH = Volume Variance $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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**Three OH Variances** Berlin Ltd. uses a combined overhead rate of $2.90 per machine hour to apply overhead to products. The rate was developed at an annual expected capacity of 211,200 machine hours; each unit of product requires two machine hours to produce. At 211,200 machine hours, expected fixed overhead for Munich Ltd. is $200,640. During November, the company produced 9,568 units and used 19,760 machine hours. Actual variable overhead for the month was $37,680 and fixed overhead was $16,000. Calculate the overhead spending, efficiency, and volume variances for November. **Note:** Do not use negative signs with your answers. **Note:** Round your answers to the nearest whole dollar. **OH Spending Variance** | Actual OH | - | Budget at Actual | = | OH Spending Variance | |-------------|---|--------------------|---|----------------------| | $ | - | $ | = | $ | **OH Efficiency Variance** | Budget at Actual | - | Budget at Standard | = | OH Efficiency Variance | |------------------|---|---------------------|---|------------------------| | $ | - | $ | = | $ | **Volume Variance** | Budget at Standard | - | Applied OH | = | Volume Variance | |--------------------|---|------------|---|-----------------| | $ | - | $ | = | $ | These tables are used to calculate and analyze the variances to understand the differences between actual and budgeted overhead costs and efficiencies. Each variance is calculated using the provided financial figures and production data from Berlin Ltd.
Transcribed Image Text:**Three OH Variances** Berlin Ltd. uses a combined overhead rate of $2.90 per machine hour to apply overhead to products. The rate was developed at an annual expected capacity of 211,200 machine hours; each unit of product requires two machine hours to produce. At 211,200 machine hours, expected fixed overhead for Munich Ltd. is $200,640. During November, the company produced 9,568 units and used 19,760 machine hours. Actual variable overhead for the month was $37,680 and fixed overhead was $16,000. Calculate the overhead spending, efficiency, and volume variances for November. **Note:** Do not use negative signs with your answers. **Note:** Round your answers to the nearest whole dollar. **OH Spending Variance** | Actual OH | - | Budget at Actual | = | OH Spending Variance | |-------------|---|--------------------|---|----------------------| | $ | - | $ | = | $ | **OH Efficiency Variance** | Budget at Actual | - | Budget at Standard | = | OH Efficiency Variance | |------------------|---|---------------------|---|------------------------| | $ | - | $ | = | $ | **Volume Variance** | Budget at Standard | - | Applied OH | = | Volume Variance | |--------------------|---|------------|---|-----------------| | $ | - | $ | = | $ | These tables are used to calculate and analyze the variances to understand the differences between actual and budgeted overhead costs and efficiencies. Each variance is calculated using the provided financial figures and production data from Berlin Ltd.
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