Variable overhead cost variance: Variable overhead cost variance can be defined as difference in the standard variable overheads and actual variable overheads. Variable overhead cost variance is calculated as under – V a r i a b l e o v e r h e a d c o s t v a r i a n c e = A c t u a l V a r i a b l e O v e r h e a d − ( S t a n d a r d C o s t – A c t u a l Q u a n t i t y ) Variable overhead efficiency variance: Variable overhead efficiency variance can be defined as difference between the standard hours or standard basis of use and actual hours or actual basis of use Variable overhead efficiency variance is calculated as under – V a r i a b l e o v e r h e a d e f f i c i e n c y v a r i a n c e = ( S t a n d a r d Q u a n t i t y – A c t u a l Q u a n t i t y ) X S t a n d a r d R a t e Fixed overhead cost variance: Fixed overhead cost variance can be defined as difference in the standard fixed overheads and actual fixed overheads. Fixed overhead cost variance is calculated as under – F i x e d o v e r h e a d c o s t v a r i a n c e = A c t u a l 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 Fixed overhead volume variance: Fixed overhead volume variance can be defined as difference between fixed overhead for standard output and fixed overhead for actual output. Fixed overhead volume variance is calculated as under – 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 = B u d g e t e d F i x e d O v e r h e a d – A l l o c a t e d F i x e d O v e r h e a d To compute: 1. Variable Overhead cost variance 2. Variable overhead efficiency variance 3. Fixed Overhead Cost variance 4. Fixed overhead volume variance

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Answer 1

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem E23.21E

To determine

Concept Introduction:

Variable overhead cost variance:

Variable overhead cost variance can be defined as difference in the standard variable overheads and actual variable overheads.

Variable overhead cost variance is calculated as under –

$V a r i a b l e o v e r h e a d c o s t v a r i a n c e = A c t u a l V a r i a b l e O v e r h e a d - (S t a n d a r d C o s t - A c t u a l Q u a n t i t y)$

Variable overhead efficiency variance:

Variable overhead efficiency variance can be defined as difference between the standard hours or standard basis of use and actual hours or actual basis of use

Variable overhead efficiency variance is calculated as under –

$V a r i a b l e o v e r h e a d e f f i c i e n c y v a r i a n c e = (S t a n d a r d Q u a n t i t y - A c t u a l Q u a n t i t y) X S t a n d a r d R a t e$

Fixed overhead cost variance:

Fixed overhead cost variance can be defined as difference in the standard fixed overheads and actual fixed overheads.

Fixed overhead cost variance is calculated as under –

$F i x e d o v e r h e a d c o s t v a r i a n c e = A c t u a l F i x e d O v e r h e a d - B u d g e t e d F i x e d O v e r h e a d$

Fixed overhead volume variance:

Fixed overhead volume variance can be defined as difference between fixed overhead for standard output and fixed overhead for actual output.

Fixed overhead volume variance is calculated as under –

$F i x e d o v e r h e a d v o l u m e v a r i a n c e = B u d g e t e d F i x e d O v e r h e a d - A l l o c a t e d F i x e d O v e r h e a d$

To compute:

1. Variable Overhead cost variance

2. Variable overhead efficiency variance

3. Fixed Overhead Cost variance

4. Fixed overhead volume variance

To determine

Requirement 2

To explain:

Why the variances are favourable or unfavourable

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What is the role of the accounting equation in the analysis of business transactions?

Explain how this theory can help individuals in at least two fields (business, medical, education, etc.) better work in intercultural settings. Define the theory based on credible sources. Discuss the development of the theory: how it originated and came to its current status. Evaluate your scholarly sources, providing a brief comment on the theoretical aspects of each. Discuss the link(s) between your chosen theory and career field. Discuss the implications of your case on individuals, society, and the public. How does an increased intercultural understanding affect these different groups? In 8-10 pages in length. The paper should include support for the topic, your analyses and position(s) by citing course readings, and include at least five credible sources that you chose for your annotated bibliography. A credible source is defined as: a scholarly or peer-reviewed journal article

which one is correct option?

Answer 2

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem E23.21E

To determine

Concept Introduction:

Variable overhead cost variance:

Variable overhead cost variance can be defined as difference in the standard variable overheads and actual variable overheads.

Variable overhead cost variance is calculated as under –

$V a r i a b l e o v e r h e a d c o s t v a r i a n c e = A c t u a l V a r i a b l e O v e r h e a d - (S t a n d a r d C o s t - A c t u a l Q u a n t i t y)$

Variable overhead efficiency variance:

Variable overhead efficiency variance can be defined as difference between the standard hours or standard basis of use and actual hours or actual basis of use

Variable overhead efficiency variance is calculated as under –

$V a r i a b l e o v e r h e a d e f f i c i e n c y v a r i a n c e = (S t a n d a r d Q u a n t i t y - A c t u a l Q u a n t i t y) X S t a n d a r d R a t e$

Fixed overhead cost variance:

Fixed overhead cost variance can be defined as difference in the standard fixed overheads and actual fixed overheads.

Fixed overhead cost variance is calculated as under –

$F i x e d o v e r h e a d c o s t v a r i a n c e = A c t u a l F i x e d O v e r h e a d - B u d g e t e d F i x e d O v e r h e a d$

Fixed overhead volume variance:

Fixed overhead volume variance can be defined as difference between fixed overhead for standard output and fixed overhead for actual output.

Fixed overhead volume variance is calculated as under –

$F i x e d o v e r h e a d v o l u m e v a r i a n c e = B u d g e t e d F i x e d O v e r h e a d - A l l o c a t e d F i x e d O v e r h e a d$

To compute:

1. Variable Overhead cost variance

2. Variable overhead efficiency variance

3. Fixed Overhead Cost variance

4. Fixed overhead volume variance

To determine

Requirement 2

To explain:

Why the variances are favourable or unfavourable

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem E23.21E

To determine

Concept Introduction:

Variable overhead cost variance:

Variable overhead cost variance can be defined as difference in the standard variable overheads and actual variable overheads.

Variable overhead cost variance is calculated as under –

$V a r i a b l e o v e r h e a d c o s t v a r i a n c e = A c t u a l V a r i a b l e O v e r h e a d - (S t a n d a r d C o s t - A c t u a l Q u a n t i t y)$

Variable overhead efficiency variance:

Variable overhead efficiency variance can be defined as difference between the standard hours or standard basis of use and actual hours or actual basis of use

Variable overhead efficiency variance is calculated as under –

$V a r i a b l e o v e r h e a d e f f i c i e n c y v a r i a n c e = (S t a n d a r d Q u a n t i t y - A c t u a l Q u a n t i t y) X S t a n d a r d R a t e$

Fixed overhead cost variance:

Fixed overhead cost variance can be defined as difference in the standard fixed overheads and actual fixed overheads.

Fixed overhead cost variance is calculated as under –

$F i x e d o v e r h e a d c o s t v a r i a n c e = A c t u a l F i x e d O v e r h e a d - B u d g e t e d F i x e d O v e r h e a d$

Fixed overhead volume variance:

Fixed overhead volume variance can be defined as difference between fixed overhead for standard output and fixed overhead for actual output.

Fixed overhead volume variance is calculated as under –

$F i x e d o v e r h e a d v o l u m e v a r i a n c e = B u d g e t e d F i x e d O v e r h e a d - A l l o c a t e d F i x e d O v e r h e a d$

To compute:

1. Variable Overhead cost variance

2. Variable overhead efficiency variance

3. Fixed Overhead Cost variance

4. Fixed overhead volume variance

To determine

Requirement 2

To explain:

Why the variances are favourable or unfavourable

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Chapter 23, Problem E23.21E

To determine