Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business. Total Overhead Variance: Total overhead variance is the difference between actually incurred overhead cost and overhead cost applied on the basis of estimated hours required to produce amount of goods. To determine: The predetermined variable overhead rate and the predetermined fixed overhead rate.

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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 25, Problem 25.12E

(a)

To determine

Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business.

Total Overhead Variance: Total overhead variance is the difference between actually incurred overhead cost and overhead cost applied on the basis of estimated hours required to produce amount of goods.

To determine: The predetermined variable overhead rate and the predetermined fixed overhead rate.

(b)

To determine

The applied overhead for B Company for the year.

(c)

To determine

the total overhead variance.

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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 25, Problem 25.12E

(a)

To determine

Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business.

Total Overhead Variance: Total overhead variance is the difference between actually incurred overhead cost and overhead cost applied on the basis of estimated hours required to produce amount of goods.

To determine: The predetermined variable overhead rate and the predetermined fixed overhead rate.

(b)

To determine

The applied overhead for B Company for the year.

(c)

To determine

the total overhead variance.

Expert Solution & Answer

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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 25, Problem 25.12E

(a)

To determine

Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the standard cost. Variances normally find the difference in between cost that is actually incurred and cost which was estimated by the business.

Total Overhead Variance: Total overhead variance is the difference between actually incurred overhead cost and overhead cost applied on the basis of estimated hours required to produce amount of goods.

To determine: The predetermined variable overhead rate and the predetermined fixed overhead rate.

(b)

To determine

The applied overhead for B Company for the year.

(c)

To determine

the total overhead variance.

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 25, Problem 25.12E

(a)

To determine