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

Please solve this accounting problem not use ai

The company will record a?

no use ai Please don't give answer with incorrect data if data is unclear comment please i will write values. otherwise will give unhelpful. no ai

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

Videos

Want to see the full answer?

Chapter 23 Solutions