Variable overheads are the expenses which are incurred by the company other than Direct Material Cost and Direct Labour Cost. As the name denotes this cost is variable in nature, i.e.,it varies with the volume of production. The difference between the Standard Variable Overhead and the Actual Variable overhead is the Variable Overheads Variance. Like Labour Cost Variance, Variable Overhead variance may be caused because of either change in rate per hour or change in number of hours from the standard time. Thus Variable Overhead Cost Variance is the sum of Variable Overhead expenditure variance and Variable Overhead Efficiency Variance. The following are the formulas for the same: Variable Overhead Cost Variance (VOCV) = Variable Overhead expenditure variance + Variable Overhead Efficiency Variance Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost (SVOC) − Actual Variable Overhead Cost(AVOC) Variable Overhead Cost Variance

Question

Want to see the full answer?

Answer 1

Question

Chapter 23, Problem 18QS

To determine

Concept Introduction:

Variable overheads are the expenses which are incurred by the company other than Direct Material Cost and Direct Labour Cost. As the name denotes this cost is variable in nature, i.e.,it varies with the volume of production.

The difference between the Standard Variable Overhead and the Actual Variable overhead is the Variable Overheads Variance.

Like Labour Cost Variance, Variable Overhead variance may be caused because of either change in rate per hour or change in number of hours from the standard time.

Thus Variable Overhead Cost Variance is the sum of Variable Overhead expenditure variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

Variable Overhead Cost Variance (VOCV) = Variable Overhead expenditure variance + Variable

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost (SVOC) − Actual

Variable Overhead Cost(AVOC)

Variable Overhead Cost Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Can you demonstrate the proper approach for solving this financial accounting question with valid techniques?

Need help this accounting question

Please provide the answer to this general accounting question using the right approach.

Answer 2

Question

Chapter 23, Problem 18QS

To determine

Concept Introduction:

Variable overheads are the expenses which are incurred by the company other than Direct Material Cost and Direct Labour Cost. As the name denotes this cost is variable in nature, i.e.,it varies with the volume of production.

The difference between the Standard Variable Overhead and the Actual Variable overhead is the Variable Overheads Variance.

Like Labour Cost Variance, Variable Overhead variance may be caused because of either change in rate per hour or change in number of hours from the standard time.

Thus Variable Overhead Cost Variance is the sum of Variable Overhead expenditure variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

Variable Overhead Cost Variance (VOCV) = Variable Overhead expenditure variance + Variable

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost (SVOC) − Actual

Variable Overhead Cost(AVOC)

Variable Overhead Cost Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 23, Problem 18QS

To determine

Concept Introduction:

Variable overheads are the expenses which are incurred by the company other than Direct Material Cost and Direct Labour Cost. As the name denotes this cost is variable in nature, i.e.,it varies with the volume of production.

The difference between the Standard Variable Overhead and the Actual Variable overhead is the Variable Overheads Variance.

Like Labour Cost Variance, Variable Overhead variance may be caused because of either change in rate per hour or change in number of hours from the standard time.

Thus Variable Overhead Cost Variance is the sum of Variable Overhead expenditure variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

Variable Overhead Cost Variance (VOCV) = Variable Overhead expenditure variance + Variable

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost (SVOC) − Actual

Variable Overhead Cost(AVOC)

Variable Overhead Cost Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 23, Problem 18QS

To determine

Concept Introduction:

Variable overheads are the expenses which are incurred by the company other than Direct Material Cost and Direct Labour Cost. As the name denotes this cost is variable in nature, i.e.,it varies with the volume of production.

The difference between the Standard Variable Overhead and the Actual Variable overhead is the Variable Overheads Variance.

Like Labour Cost Variance, Variable Overhead variance may be caused because of either change in rate per hour or change in number of hours from the standard time.

Thus Variable Overhead Cost Variance is the sum of Variable Overhead expenditure variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

Variable Overhead Cost Variance (VOCV) = Variable Overhead expenditure variance + Variable

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost (SVOC) − Actual

Variable Overhead Cost(AVOC)

Variable Overhead Cost Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 23, Problem 18QS

To determine

Concept Introduction:

Variable overheads are the expenses which are incurred by the company other than Direct Material Cost and Direct Labour Cost. As the name denotes this cost is variable in nature, i.e.,it varies with the volume of production.

The difference between the Standard Variable Overhead and the Actual Variable overhead is the Variable Overheads Variance.

Like Labour Cost Variance, Variable Overhead variance may be caused because of either change in rate per hour or change in number of hours from the standard time.

Thus Variable Overhead Cost Variance is the sum of Variable Overhead expenditure variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

Variable Overhead Cost Variance (VOCV) = Variable Overhead expenditure variance + Variable

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost (SVOC) − Actual

Variable Overhead Cost(AVOC)

Variable Overhead Cost Variance

Answer 6

Chapter 23, Problem 18QS

To determine

Concept Introduction:

Variable overheads are the expenses which are incurred by the company other than Direct Material Cost and Direct Labour Cost. As the name denotes this cost is variable in nature, i.e.,it varies with the volume of production.

The difference between the Standard Variable Overhead and the Actual Variable overhead is the Variable Overheads Variance.

Like Labour Cost Variance, Variable Overhead variance may be caused because of either change in rate per hour or change in number of hours from the standard time.

Thus Variable Overhead Cost Variance is the sum of Variable Overhead expenditure variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

Variable Overhead Cost Variance (VOCV) = Variable Overhead expenditure variance + Variable

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost (SVOC) − Actual

Variable Overhead Cost(AVOC)

Variable Overhead Cost Variance

Answer 7

Chapter 23, Problem 18QS

To determine

Concept Introduction:

Variable overheads are the expenses which are incurred by the company other than Direct Material Cost and Direct Labour Cost. As the name denotes this cost is variable in nature, i.e.,it varies with the volume of production.

The difference between the Standard Variable Overhead and the Actual Variable overhead is the Variable Overheads Variance.

Like Labour Cost Variance, Variable Overhead variance may be caused because of either change in rate per hour or change in number of hours from the standard time.

Thus Variable Overhead Cost Variance is the sum of Variable Overhead expenditure variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

Variable Overhead Cost Variance (VOCV) = Variable Overhead expenditure variance + Variable

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost (SVOC) − Actual

Variable Overhead Cost(AVOC)

Variable Overhead Cost 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

Concept explainers

Videos

Want to see the full answer?

Chapter 23 Solutions