Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches Rath Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour Actual variable overhead costs Actual direct labor hours worked (AH) Actual production in units Standard hours (SH) allowed for actual units produced Required: $ $ Using the columnar approach, calculate the variable overhead spending and efficiency variances. Enter amounts as positive numbers. (1) Actual VOH ✓ (2) AH x SVOR ✔ (3) SH x SVOR ✔ Unfavorable ✓ $3.75 $222,816 57,200 15,000 60,000 Favorable ✓ Efficiency Spending . Using the formula approach, calculate the variable overhead spending variance. Enter amount as a positive number. U V . Using the formula approach, calculate the variable overhead efficiency variance. Enter amount as a positive number. Favorable ✓ . Calculate the total variable overhead variance. Enter amount as a positive number. F✓
Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches Rath Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour Actual variable overhead costs Actual direct labor hours worked (AH) Actual production in units Standard hours (SH) allowed for actual units produced Required: $ $ Using the columnar approach, calculate the variable overhead spending and efficiency variances. Enter amounts as positive numbers. (1) Actual VOH ✓ (2) AH x SVOR ✔ (3) SH x SVOR ✔ Unfavorable ✓ $3.75 $222,816 57,200 15,000 60,000 Favorable ✓ Efficiency Spending . Using the formula approach, calculate the variable overhead spending variance. Enter amount as a positive number. U V . Using the formula approach, calculate the variable overhead efficiency variance. Enter amount as a positive number. Favorable ✓ . Calculate the total variable overhead variance. Enter amount as a positive number. F✓
Chapter1: Financial Statements And Business Decisions
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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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Transcribed Image Text:Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches
Rath Company provided the following information:
Standard variable overhead rate (SVOR) per direct labor hour
Actual variable overhead costs
Actual direct labor hours worked (AH)
Actual production in units
Standard hours (SH) allowed for actual units produced
Required:
$
$
Using the columnar approach, calculate the variable overhead spending and efficiency variances. Enter amounts as positive numbers.
(1) Actual VOH ✓
(2) AH x SVOR ✔
(3) SH x SVOR ✔
Unfavorable ✓
$3.75
$222,816
57,200
15,000
60,000
Favorable ✓
Efficiency
Spending
. Using the formula approach, calculate the variable overhead spending variance. Enter amount as a positive number.
U V
. Using the formula approach, calculate the variable overhead efficiency variance. Enter amount as a positive number.
Favorable ✓
. Calculate the total variable overhead variance. Enter amount as a positive number.
F✓
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