Variable factory overhead controllable variances: The difference between the actual variable overhead costs and the standard overhead for actual production is known as the variable factory overhead controllable variances. The variable factory overhead controllable variance is computed as follows: Variable factory overhead controllable variance } = ( Actual variable factory overhead − Standard variable factory overhead ) Fixed factory overhead volume variances: Factory overhead volume variances refers to the difference between the budgeted fixed overheads at 100% of normal capacity, and the standard fixed overheads for the actual units produced. The factory overhead volume variances can be calculated as follows: Fixed factory overhead volume variance } = ( Standard hours for 100% of normal capacity − Standard hours for actual units produced ) × ( Fixed factory overhead rate ) The variable factory overhead controllable variance.

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Answer 1

Question

Chapter 8, Problem 16E

(a)

To determine

Variable factory overhead controllable variances:

The difference between the actual variable overhead costs and the standard overhead for actual production is known as the variable factory overhead controllable variances. The variable factory overhead controllable variance is computed as follows:

Variable factory overheadcontrollable variance}= (Actual variable factory overhead−Standard variable factory overhead )

Fixed factory overhead volume variances:

Factory overhead volume variances refers to the difference between the budgeted fixed overheads at 100% of normal capacity, and the standard fixed overheads for the actual units produced. The factory overhead volume variances can be calculated as follows:

Fixed factory overheadvolume variance}= (Standard hours for 100% ofnormal capacity−Standardhours for actual units produced)×(Fixed factory overhead rate)

The variable factory overhead controllable variance.

(b)

To determine

The fixed factory overhead volume variance.

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Answer 2

Question

Chapter 8, Problem 16E

(a)

To determine

Variable factory overhead controllable variances:

The difference between the actual variable overhead costs and the standard overhead for actual production is known as the variable factory overhead controllable variances. The variable factory overhead controllable variance is computed as follows:

Variable factory overheadcontrollable variance}= (Actual variable factory overhead−Standard variable factory overhead )

Fixed factory overhead volume variances:

Factory overhead volume variances refers to the difference between the budgeted fixed overheads at 100% of normal capacity, and the standard fixed overheads for the actual units produced. The factory overhead volume variances can be calculated as follows:

Fixed factory overheadvolume variance}= (Standard hours for 100% ofnormal capacity−Standardhours for actual units produced)×(Fixed factory overhead rate)

The variable factory overhead controllable variance.

(b)

To determine

The fixed factory overhead volume variance.

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Answer 3

Question

Chapter 8, Problem 16E

(a)

To determine

Variable factory overhead controllable variances:

The difference between the actual variable overhead costs and the standard overhead for actual production is known as the variable factory overhead controllable variances. The variable factory overhead controllable variance is computed as follows:

Variable factory overheadcontrollable variance}= (Actual variable factory overhead−Standard variable factory overhead )

Fixed factory overhead volume variances:

Factory overhead volume variances refers to the difference between the budgeted fixed overheads at 100% of normal capacity, and the standard fixed overheads for the actual units produced. The factory overhead volume variances can be calculated as follows:

Fixed factory overheadvolume variance}= (Standard hours for 100% ofnormal capacity−Standardhours for actual units produced)×(Fixed factory overhead rate)

The variable factory overhead controllable variance.

(b)

To determine

The fixed factory overhead volume variance.

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Answer 4

Question

Chapter 8, Problem 16E

(a)

To determine

Variable factory overhead controllable variances:

The difference between the actual variable overhead costs and the standard overhead for actual production is known as the variable factory overhead controllable variances. The variable factory overhead controllable variance is computed as follows:

Variable factory overheadcontrollable variance}= (Actual variable factory overhead−Standard variable factory overhead )

Fixed factory overhead volume variances:

Factory overhead volume variances refers to the difference between the budgeted fixed overheads at 100% of normal capacity, and the standard fixed overheads for the actual units produced. The factory overhead volume variances can be calculated as follows:

Fixed factory overheadvolume variance}= (Standard hours for 100% ofnormal capacity−Standardhours for actual units produced)×(Fixed factory overhead rate)

The variable factory overhead controllable variance.

(b)

To determine

The fixed factory overhead volume variance.

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Answer 5

Chapter 8, Problem 16E

(a)

To determine

Variable factory overhead controllable variances:

The difference between the actual variable overhead costs and the standard overhead for actual production is known as the variable factory overhead controllable variances. The variable factory overhead controllable variance is computed as follows:

Variable factory overheadcontrollable variance}= (Actual variable factory overhead−Standard variable factory overhead )

Fixed factory overhead volume variances:

Factory overhead volume variances refers to the difference between the budgeted fixed overheads at 100% of normal capacity, and the standard fixed overheads for the actual units produced. The factory overhead volume variances can be calculated as follows:

Fixed factory overheadvolume variance}= (Standard hours for 100% ofnormal capacity−Standardhours for actual units produced)×(Fixed factory overhead rate)

The variable factory overhead controllable variance.

(b)

To determine

The fixed factory overhead volume variance.

Answer 6

Chapter 8, Problem 16E

(a)

To determine

Variable factory overhead controllable variances:

The difference between the actual variable overhead costs and the standard overhead for actual production is known as the variable factory overhead controllable variances. The variable factory overhead controllable variance is computed as follows:

Variable factory overheadcontrollable variance}= (Actual variable factory overhead−Standard variable factory overhead )

Fixed factory overhead volume variances:

Factory overhead volume variances refers to the difference between the budgeted fixed overheads at 100% of normal capacity, and the standard fixed overheads for the actual units produced. The factory overhead volume variances can be calculated as follows:

Fixed factory overheadvolume variance}= (Standard hours for 100% ofnormal capacity−Standardhours for actual units produced)×(Fixed factory overhead rate)

The variable factory overhead controllable variance.

Answer 7

Chapter 8, Problem 16E

(a)

To determine

Variable factory overhead controllable variances:

The difference between the actual variable overhead costs and the standard overhead for actual production is known as the variable factory overhead controllable variances. The variable factory overhead controllable variance is computed as follows:

Variable factory overheadcontrollable variance}= (Actual variable factory overhead−Standard variable factory overhead )

Fixed factory overhead volume variances:

Factory overhead volume variances refers to the difference between the budgeted fixed overheads at 100% of normal capacity, and the standard fixed overheads for the actual units produced. The factory overhead volume variances can be calculated as follows:

Fixed factory overheadvolume variance}= (Standard hours for 100% ofnormal capacity−Standardhours for actual units produced)×(Fixed factory overhead rate)

The variable factory overhead controllable variance.

Answer 8

(b)

To determine

The fixed factory overhead volume variance.

Answer 9

(b)

To determine

The fixed factory overhead volume variance.

Answer 10

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Answer 13

Ch. 8 - What are the basic objectives in the use of...Ch. 8 - What is meant by reporting by the principle of...Ch. 8 - What are the two variances between the actual cost...Ch. 8 - The materials cost variance report for Nickols...Ch. 8 - A. What are the two variances between the actual...Ch. 8 - Prob. 6DQ Ch. 8 - Would the use of standards be appropriate in a...Ch. 8 - A. Describe the two variances between the actual...Ch. 8 - If variances are recorded in the accounts at the...Ch. 8 - Prob. 10DQ

Solution Summary: The author explains the variable factory overhead controllable variance, which is the difference between the actual variable overhead costs and the standard fixed overhead for actual production.

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The fixed factory overhead volume variance.

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