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 spending variance and Variable Overhead Efficiency Variance. The following are the formulas for the same: Variable Overhead Cost Variance (VOCV) = Variable Overhead spending variance + Variable Overhead Efficiency Variance Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost(SVOC) − Actual Variable Overhead Cost(AVOC) Variable Overhead spending Variance = Standard Variable overheads for actual hours − Actual Variable overhead cost Variable Overhead Efficiency Variance = Standard Variable overhead cost − Standard variable Overheads for actual hours Variable Overhead Spending Variance and Efficiency Variance

Question

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Answer 1

Question

Chapter 23, Problem 19QS

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 spending variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

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

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost(SVOC) − Actual
Variable Overhead Cost(AVOC)
Variable Overhead spending Variance = Standard Variable overheads for actual hours − Actual
Variable overhead cost
Variable Overhead Efficiency Variance = Standard Variable overhead cost − Standard variable

Overheads for actual hours

Variable Overhead Spending Variance and Efficiency Variance

Expert Solution & Answer

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Answer 2

Question

Chapter 23, Problem 19QS

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 spending variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

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

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost(SVOC) − Actual
Variable Overhead Cost(AVOC)
Variable Overhead spending Variance = Standard Variable overheads for actual hours − Actual
Variable overhead cost
Variable Overhead Efficiency Variance = Standard Variable overhead cost − Standard variable

Overheads for actual hours

Variable Overhead Spending Variance and Efficiency Variance

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 23, Problem 19QS

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 spending variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

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

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost(SVOC) − Actual
Variable Overhead Cost(AVOC)
Variable Overhead spending Variance = Standard Variable overheads for actual hours − Actual
Variable overhead cost
Variable Overhead Efficiency Variance = Standard Variable overhead cost − Standard variable

Overheads for actual hours

Variable Overhead Spending Variance and Efficiency Variance

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 23, Problem 19QS

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 spending variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

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

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost(SVOC) − Actual
Variable Overhead Cost(AVOC)
Variable Overhead spending Variance = Standard Variable overheads for actual hours − Actual
Variable overhead cost
Variable Overhead Efficiency Variance = Standard Variable overhead cost − Standard variable

Overheads for actual hours

Variable Overhead Spending Variance and Efficiency Variance

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 23, Problem 19QS

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 spending variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

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

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost(SVOC) − Actual
Variable Overhead Cost(AVOC)
Variable Overhead spending Variance = Standard Variable overheads for actual hours − Actual
Variable overhead cost
Variable Overhead Efficiency Variance = Standard Variable overhead cost − Standard variable

Overheads for actual hours

Variable Overhead Spending Variance and Efficiency Variance

Answer 6

Chapter 23, Problem 19QS

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 spending variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

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

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost(SVOC) − Actual
Variable Overhead Cost(AVOC)
Variable Overhead spending Variance = Standard Variable overheads for actual hours − Actual
Variable overhead cost
Variable Overhead Efficiency Variance = Standard Variable overhead cost − Standard variable

Overheads for actual hours

Variable Overhead Spending Variance and Efficiency Variance

Answer 7

Chapter 23, Problem 19QS

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 spending variance and Variable Overhead Efficiency Variance.

The following are the formulas for the same:

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

Overhead Efficiency Variance

Also, Variable Overhead Cost Variance (VOCV) = Standard Variable Overhead Cost(SVOC) − Actual
Variable Overhead Cost(AVOC)
Variable Overhead spending Variance = Standard Variable overheads for actual hours − Actual
Variable overhead cost
Variable Overhead Efficiency Variance = Standard Variable overhead cost − Standard variable

Overheads for actual hours

Variable Overhead Spending Variance and Efficiency Variance

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

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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

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