Overhead expenses comprises of two elements which are (i) Variable Overheads and (ii) Fixed Overheads. The difference between the Actual Overheads and Standard Overheads can be of two reasons. Reason 1 − Difference in volume of production Reason 2 − Difference in rate of overheads While the difference in rate is considered as controllable variance, the other is non controllable and it is called as Overhead Volume Variance. Thus Overhead Cost Variance is sum of Overhead Controllable Variance and Overhead Volume Variance. The formula for calculating Overhead Cost Variances are as follows: Overhead Cost Variance (OCV) = Overhead Volume Variance (OVV) + Overhead Controllable/Price Variance (OPV) Also, OCV = Standard Overhead applied to production − Actual Overhead cost Controllable Overhead Variance

Question

Want to see the full answer?

Answer 1

Question

Chapter 23, Problem 13QS

To determine

Concept Introduction:

Overhead expenses comprises of two elements which are (i) Variable Overheads and (ii) Fixed Overheads.

The difference between the Actual Overheads and Standard Overheads can be of two reasons.

Reason 1 − Difference in volume of production

Reason 2 − Difference in rate of overheads

While the difference in rate is considered as controllable variance, the other is non controllable and it is called as Overhead Volume Variance.

Thus Overhead Cost Variance is sum of Overhead Controllable Variance and Overhead Volume Variance.

The formula for calculating Overhead Cost Variances are as follows:

Overhead Cost Variance (OCV) = Overhead Volume Variance (OVV) + Overhead Controllable/Price Variance (OPV)

Also, OCV = Standard Overhead applied to production − Actual Overhead cost

Controllable Overhead Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

MCQ

General accounting

Find the break even point general accounting

Answer 2

Question

Chapter 23, Problem 13QS

To determine

Concept Introduction:

Overhead expenses comprises of two elements which are (i) Variable Overheads and (ii) Fixed Overheads.

The difference between the Actual Overheads and Standard Overheads can be of two reasons.

Reason 1 − Difference in volume of production

Reason 2 − Difference in rate of overheads

While the difference in rate is considered as controllable variance, the other is non controllable and it is called as Overhead Volume Variance.

Thus Overhead Cost Variance is sum of Overhead Controllable Variance and Overhead Volume Variance.

The formula for calculating Overhead Cost Variances are as follows:

Overhead Cost Variance (OCV) = Overhead Volume Variance (OVV) + Overhead Controllable/Price Variance (OPV)

Also, OCV = Standard Overhead applied to production − Actual Overhead cost

Controllable Overhead Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 23, Problem 13QS

To determine

Concept Introduction:

Overhead expenses comprises of two elements which are (i) Variable Overheads and (ii) Fixed Overheads.

The difference between the Actual Overheads and Standard Overheads can be of two reasons.

Reason 1 − Difference in volume of production

Reason 2 − Difference in rate of overheads

While the difference in rate is considered as controllable variance, the other is non controllable and it is called as Overhead Volume Variance.

Thus Overhead Cost Variance is sum of Overhead Controllable Variance and Overhead Volume Variance.

The formula for calculating Overhead Cost Variances are as follows:

Overhead Cost Variance (OCV) = Overhead Volume Variance (OVV) + Overhead Controllable/Price Variance (OPV)

Also, OCV = Standard Overhead applied to production − Actual Overhead cost

Controllable Overhead Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 23, Problem 13QS

To determine

Concept Introduction:

Overhead expenses comprises of two elements which are (i) Variable Overheads and (ii) Fixed Overheads.

The difference between the Actual Overheads and Standard Overheads can be of two reasons.

Reason 1 − Difference in volume of production

Reason 2 − Difference in rate of overheads

While the difference in rate is considered as controllable variance, the other is non controllable and it is called as Overhead Volume Variance.

Thus Overhead Cost Variance is sum of Overhead Controllable Variance and Overhead Volume Variance.

The formula for calculating Overhead Cost Variances are as follows:

Overhead Cost Variance (OCV) = Overhead Volume Variance (OVV) + Overhead Controllable/Price Variance (OPV)

Also, OCV = Standard Overhead applied to production − Actual Overhead cost

Controllable Overhead Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 23, Problem 13QS

To determine

Concept Introduction:

Overhead expenses comprises of two elements which are (i) Variable Overheads and (ii) Fixed Overheads.

The difference between the Actual Overheads and Standard Overheads can be of two reasons.

Reason 1 − Difference in volume of production

Reason 2 − Difference in rate of overheads

While the difference in rate is considered as controllable variance, the other is non controllable and it is called as Overhead Volume Variance.

Thus Overhead Cost Variance is sum of Overhead Controllable Variance and Overhead Volume Variance.

The formula for calculating Overhead Cost Variances are as follows:

Overhead Cost Variance (OCV) = Overhead Volume Variance (OVV) + Overhead Controllable/Price Variance (OPV)

Also, OCV = Standard Overhead applied to production − Actual Overhead cost

Controllable Overhead Variance

Answer 6

Chapter 23, Problem 13QS

To determine

Concept Introduction:

Overhead expenses comprises of two elements which are (i) Variable Overheads and (ii) Fixed Overheads.

The difference between the Actual Overheads and Standard Overheads can be of two reasons.

Reason 1 − Difference in volume of production

Reason 2 − Difference in rate of overheads

While the difference in rate is considered as controllable variance, the other is non controllable and it is called as Overhead Volume Variance.

Thus Overhead Cost Variance is sum of Overhead Controllable Variance and Overhead Volume Variance.

The formula for calculating Overhead Cost Variances are as follows:

Overhead Cost Variance (OCV) = Overhead Volume Variance (OVV) + Overhead Controllable/Price Variance (OPV)

Also, OCV = Standard Overhead applied to production − Actual Overhead cost

Controllable Overhead Variance

Answer 7

Chapter 23, Problem 13QS

To determine

Concept Introduction:

Overhead expenses comprises of two elements which are (i) Variable Overheads and (ii) Fixed Overheads.

The difference between the Actual Overheads and Standard Overheads can be of two reasons.

Reason 1 − Difference in volume of production

Reason 2 − Difference in rate of overheads

While the difference in rate is considered as controllable variance, the other is non controllable and it is called as Overhead Volume Variance.

Thus Overhead Cost Variance is sum of Overhead Controllable Variance and Overhead Volume Variance.

The formula for calculating Overhead Cost Variances are as follows:

Overhead Cost Variance (OCV) = Overhead Volume Variance (OVV) + Overhead Controllable/Price Variance (OPV)

Also, OCV = Standard Overhead applied to production − Actual Overhead cost

Controllable Overhead Variance

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 23 - Prob. 1QS Ch. 23 - Prob. 2QS Ch. 23 - Prob. 3QS Ch. 23 - Prob. 4QS Ch. 23 - Prob. 5QS Ch. 23 - Prob. 6QS Ch. 23 - Prob. 7QS Ch. 23 - Prob. 8QS Ch. 23 - Prob. 9QS Ch. 23 - Prob. 10QS

Concept explainers

Videos

Want to see the full answer?

Chapter 23 Solutions