Controllable Variance: Controllable Variance is used for the factory overhead variances. Controllable Variance for factory overhead is the difference between the actual overhead and standard overhead at standard output. The formula to calculate the Controllable Variance for factory overhead is as follows: C o n t r o l l a b l e V a r i a n c e = A c t u a l O v e r h e a d C o s t − ( B u d g e t e d o v e r h e a d c o s t p e r u n i t x S t a n d a r d u n i t s ) Fixed Overhead Volume variance: The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost The formula to calculate the Fixed Overhead volume Variance is as follows: F i x e d O v e r h e a d V o l u m e V a r i a n c e = A l l o c a t e d F i x e d O v e r h e a d − B u d g e t e d F i x e d O v e r h e a d Note: The allocated fixed overhead is calculated with the help of following formula: A l l o c a t e d f i x e d O v e r h e a d c o s t = Standard h o u r s × P r e d e t e r m i n e d f i x e d O v e r h e a d a l l o c a t i o n r a t e The effect of operating level on controllable variance and volume variance

Question

Want to see the full answer?

Answer 1

Question

Chapter 23, Problem 16DQ

To determine

Introduction:

Controllable Variance:

Controllable Variance is used for the factory overhead variances. Controllable Variance for factory overhead is the difference between the actual overhead and standard overhead at standard output.

The formula to calculate the Controllable Variance for factory overhead is as follows:

$Controllable Variance =Actual Overhead Cost− (Budgeted overhead cost per unit x Standard units)$

Fixed Overhead Volume variance:

The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost The formula to calculate the Fixed Overhead volume Variance is as follows:

$Fixed Overhead Volume Variance = Allocated Fixed Overhead − Budgeted Fixed Overhead$

Note: The allocated fixed overhead is calculated with the help of following formula:

$Allocated fixed Overhead cost = Standard hours ×Predetermined fixed Overhead allocation rate$

The effect of operating level on controllable variance and volume variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

I am looking for help with this general accounting question using proper accounting standards.

I need help with this general accounting problem using proper accounting guidelines.

Accurate answer

Answer 2

Question

Chapter 23, Problem 16DQ

To determine

Introduction:

Controllable Variance:

Controllable Variance is used for the factory overhead variances. Controllable Variance for factory overhead is the difference between the actual overhead and standard overhead at standard output.

The formula to calculate the Controllable Variance for factory overhead is as follows:

$Controllable Variance =Actual Overhead Cost− (Budgeted overhead cost per unit x Standard units)$

Fixed Overhead Volume variance:

The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost The formula to calculate the Fixed Overhead volume Variance is as follows:

$Fixed Overhead Volume Variance = Allocated Fixed Overhead − Budgeted Fixed Overhead$

Note: The allocated fixed overhead is calculated with the help of following formula:

$Allocated fixed Overhead cost = Standard hours ×Predetermined fixed Overhead allocation rate$

The effect of operating level on controllable variance and volume variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 23, Problem 16DQ

To determine

Introduction:

Controllable Variance:

Controllable Variance is used for the factory overhead variances. Controllable Variance for factory overhead is the difference between the actual overhead and standard overhead at standard output.

The formula to calculate the Controllable Variance for factory overhead is as follows:

$Controllable Variance =Actual Overhead Cost− (Budgeted overhead cost per unit x Standard units)$

Fixed Overhead Volume variance:

The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost The formula to calculate the Fixed Overhead volume Variance is as follows:

$Fixed Overhead Volume Variance = Allocated Fixed Overhead − Budgeted Fixed Overhead$

Note: The allocated fixed overhead is calculated with the help of following formula:

$Allocated fixed Overhead cost = Standard hours ×Predetermined fixed Overhead allocation rate$

The effect of operating level on controllable variance and volume variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 23, Problem 16DQ

To determine

Introduction:

Controllable Variance:

Controllable Variance is used for the factory overhead variances. Controllable Variance for factory overhead is the difference between the actual overhead and standard overhead at standard output.

The formula to calculate the Controllable Variance for factory overhead is as follows:

$Controllable Variance =Actual Overhead Cost− (Budgeted overhead cost per unit x Standard units)$

Fixed Overhead Volume variance:

The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost The formula to calculate the Fixed Overhead volume Variance is as follows:

$Fixed Overhead Volume Variance = Allocated Fixed Overhead − Budgeted Fixed Overhead$

Note: The allocated fixed overhead is calculated with the help of following formula:

$Allocated fixed Overhead cost = Standard hours ×Predetermined fixed Overhead allocation rate$

The effect of operating level on controllable variance and volume variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 23, Problem 16DQ

To determine

Introduction:

Controllable Variance:

Controllable Variance is used for the factory overhead variances. Controllable Variance for factory overhead is the difference between the actual overhead and standard overhead at standard output.

The formula to calculate the Controllable Variance for factory overhead is as follows:

$Controllable Variance =Actual Overhead Cost− (Budgeted overhead cost per unit x Standard units)$

Fixed Overhead Volume variance:

The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost The formula to calculate the Fixed Overhead volume Variance is as follows:

$Fixed Overhead Volume Variance = Allocated Fixed Overhead − Budgeted Fixed Overhead$

Note: The allocated fixed overhead is calculated with the help of following formula:

$Allocated fixed Overhead cost = Standard hours ×Predetermined fixed Overhead allocation rate$

The effect of operating level on controllable variance and volume variance

Answer 6

Chapter 23, Problem 16DQ

To determine

Introduction:

Controllable Variance:

Controllable Variance is used for the factory overhead variances. Controllable Variance for factory overhead is the difference between the actual overhead and standard overhead at standard output.

The formula to calculate the Controllable Variance for factory overhead is as follows:

$Controllable Variance =Actual Overhead Cost− (Budgeted overhead cost per unit x Standard units)$

Fixed Overhead Volume variance:

The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost The formula to calculate the Fixed Overhead volume Variance is as follows:

$Fixed Overhead Volume Variance = Allocated Fixed Overhead − Budgeted Fixed Overhead$

Note: The allocated fixed overhead is calculated with the help of following formula:

$Allocated fixed Overhead cost = Standard hours ×Predetermined fixed Overhead allocation rate$

The effect of operating level on controllable variance and volume variance

Answer 7

Chapter 23, Problem 16DQ

To determine

Introduction:

Controllable Variance:

Controllable Variance is used for the factory overhead variances. Controllable Variance for factory overhead is the difference between the actual overhead and standard overhead at standard output.

The formula to calculate the Controllable Variance for factory overhead is as follows:

$Controllable Variance =Actual Overhead Cost− (Budgeted overhead cost per unit x Standard units)$

Fixed Overhead Volume variance:

The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost The formula to calculate the Fixed Overhead volume Variance is as follows:

$Fixed Overhead Volume Variance = Allocated Fixed Overhead − Budgeted Fixed Overhead$

Note: The allocated fixed overhead is calculated with the help of following formula:

$Allocated fixed Overhead cost = Standard hours ×Predetermined fixed Overhead allocation rate$

The effect of operating level on controllable variance and volume 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

Videos

Want to see the full answer?

Chapter 23 Solutions