Using the following information: Actual direct labor hours used 4,700 Units produced 1,500 Standard labor hours per unit produced 3 Budgeted variable overhead per standard direct labor hour 2 Actual variable overhead incurred 9,500 Compute the (1) variable overhead efficiency variance, and (2) variable overhead spending variance: (1) 400F; (2) 100 F (1) 400UF; (2) 100UF (1) 400F; (2) 100UF (1) 400UF; (2) 100F
Using the following information: Actual direct labor hours used 4,700 Units produced 1,500 Standard labor hours per unit produced 3 Budgeted variable overhead per standard direct labor hour 2 Actual variable overhead incurred 9,500 Compute the (1) variable overhead efficiency variance, and (2) variable overhead spending variance: (1) 400F; (2) 100 F (1) 400UF; (2) 100UF (1) 400F; (2) 100UF (1) 400UF; (2) 100F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Using the following information:
Actual direct labor hours used 4,700
Units produced 1,500
Standard labor hours per unit produced 3
Budgeted variable overhead per standard direct labor hour 2
Actual variable overhead incurred 9,500
Compute the (1) variable overhead efficiency variance, and (2) variable overhead spending variance:
- (1) 400F; (2) 100 F
- (1) 400UF; (2) 100UF
- (1) 400F; (2) 100UF
- (1) 400UF; (2) 100F
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