Spending Variance: It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production. To identify: . The spending variance is favorable or unfavorable.

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Answer 1

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Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 8, Problem 8.21E

(1)

To determine

Spending Variance:

It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production.

To identify:. The spending variance is favorable or unfavorable.

(2).

To determine

Efficiency Variance:

It indicates the quantity of actual input over the budgeted input quantity at the budgeted rate.

To identify: The efficiency variance is favorable or unfavorable.

(3)

To determine

Production-Volume Variance:

It reports that amount which is result of the multiplication of difference between actual output and budgeted output of particular period with the budgeted rate. This variance indicates the production efficiency of a company.

The production-volume variance is favorable or unfavorable.

(4)

To determine

Flexible-Budget Variance:

It reports the actual results over the results of flexible budgets and flexible budgets are those budgets which indicate the budgeted values for actual output.

The flexible-budget variance is favorable or unfavorable.

(5)

To determine

Variable Cost:

The cost which fluctuates on the basis of the output level produced. The variable cost and output shares a direct relationship.

Fixed Cost:

The cost which does not fluctuate on the basis of the output level produced. It remains same, no matter output increases or decreases.

To identify: The amount of manufacturing overhead is favorable or unfavorable.

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Answer 2

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 8, Problem 8.21E

(1)

To determine

Spending Variance:

It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production.

To identify:. The spending variance is favorable or unfavorable.

(2).

To determine

Efficiency Variance:

It indicates the quantity of actual input over the budgeted input quantity at the budgeted rate.

To identify: The efficiency variance is favorable or unfavorable.

(3)

To determine

Production-Volume Variance:

It reports that amount which is result of the multiplication of difference between actual output and budgeted output of particular period with the budgeted rate. This variance indicates the production efficiency of a company.

The production-volume variance is favorable or unfavorable.

(4)

To determine

Flexible-Budget Variance:

It reports the actual results over the results of flexible budgets and flexible budgets are those budgets which indicate the budgeted values for actual output.

The flexible-budget variance is favorable or unfavorable.

(5)

To determine

Variable Cost:

The cost which fluctuates on the basis of the output level produced. The variable cost and output shares a direct relationship.

Fixed Cost:

The cost which does not fluctuate on the basis of the output level produced. It remains same, no matter output increases or decreases.

To identify: The amount of manufacturing overhead is favorable or unfavorable.

Expert Solution & Answer

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Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 8, Problem 8.21E

(1)

To determine

Spending Variance:

It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production.

To identify:. The spending variance is favorable or unfavorable.

(2).

To determine

Efficiency Variance:

It indicates the quantity of actual input over the budgeted input quantity at the budgeted rate.

To identify: The efficiency variance is favorable or unfavorable.

(3)

To determine

Production-Volume Variance:

It reports that amount which is result of the multiplication of difference between actual output and budgeted output of particular period with the budgeted rate. This variance indicates the production efficiency of a company.

The production-volume variance is favorable or unfavorable.

(4)

To determine

Flexible-Budget Variance:

It reports the actual results over the results of flexible budgets and flexible budgets are those budgets which indicate the budgeted values for actual output.

The flexible-budget variance is favorable or unfavorable.

(5)

To determine

Variable Cost:

The cost which fluctuates on the basis of the output level produced. The variable cost and output shares a direct relationship.

Fixed Cost:

The cost which does not fluctuate on the basis of the output level produced. It remains same, no matter output increases or decreases.

To identify: The amount of manufacturing overhead is favorable or unfavorable.

Expert Solution & Answer

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Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 8, Problem 8.21E

(1)

To determine

Spending Variance:

It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production.

To identify:. The spending variance is favorable or unfavorable.

(2).

To determine

Efficiency Variance:

It indicates the quantity of actual input over the budgeted input quantity at the budgeted rate.

To identify: The efficiency variance is favorable or unfavorable.

(3)

To determine

Production-Volume Variance:

It reports that amount which is result of the multiplication of difference between actual output and budgeted output of particular period with the budgeted rate. This variance indicates the production efficiency of a company.

The production-volume variance is favorable or unfavorable.

(4)

To determine

Flexible-Budget Variance:

It reports the actual results over the results of flexible budgets and flexible budgets are those budgets which indicate the budgeted values for actual output.

The flexible-budget variance is favorable or unfavorable.

(5)

To determine

Variable Cost:

The cost which fluctuates on the basis of the output level produced. The variable cost and output shares a direct relationship.

Fixed Cost:

The cost which does not fluctuate on the basis of the output level produced. It remains same, no matter output increases or decreases.

To identify: The amount of manufacturing overhead is favorable or unfavorable.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 8.21E

(1)

To determine

Spending Variance:

It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production.

To identify:. The spending variance is favorable or unfavorable.

(2).

To determine

Efficiency Variance:

It indicates the quantity of actual input over the budgeted input quantity at the budgeted rate.

To identify: The efficiency variance is favorable or unfavorable.

(3)

To determine

Production-Volume Variance:

It reports that amount which is result of the multiplication of difference between actual output and budgeted output of particular period with the budgeted rate. This variance indicates the production efficiency of a company.

The production-volume variance is favorable or unfavorable.

(4)

To determine

Flexible-Budget Variance:

It reports the actual results over the results of flexible budgets and flexible budgets are those budgets which indicate the budgeted values for actual output.

The flexible-budget variance is favorable or unfavorable.

(5)

To determine

Variable Cost:

The cost which fluctuates on the basis of the output level produced. The variable cost and output shares a direct relationship.

Fixed Cost:

The cost which does not fluctuate on the basis of the output level produced. It remains same, no matter output increases or decreases.

To identify: The amount of manufacturing overhead is favorable or unfavorable.

Answer 6

Chapter 8, Problem 8.21E

(1)

To determine

Spending Variance:

It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production.

To identify:. The spending variance is favorable or unfavorable.

Answer 7

Chapter 8, Problem 8.21E

(1)

To determine

Spending Variance:

It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production.

To identify:. The spending variance is favorable or unfavorable.

Answer 8

(2).

To determine

Efficiency Variance:

It indicates the quantity of actual input over the budgeted input quantity at the budgeted rate.

To identify: The efficiency variance is favorable or unfavorable.

Answer 9

(2).

To determine

Efficiency Variance:

It indicates the quantity of actual input over the budgeted input quantity at the budgeted rate.

To identify: The efficiency variance is favorable or unfavorable.

Answer 10

(3)

To determine

Production-Volume Variance:

It reports that amount which is result of the multiplication of difference between actual output and budgeted output of particular period with the budgeted rate. This variance indicates the production efficiency of a company.

The production-volume variance is favorable or unfavorable.

Answer 11

(3)

To determine

Production-Volume Variance:

It reports that amount which is result of the multiplication of difference between actual output and budgeted output of particular period with the budgeted rate. This variance indicates the production efficiency of a company.

The production-volume variance is favorable or unfavorable.

Answer 12

(4)

To determine

Flexible-Budget Variance:

It reports the actual results over the results of flexible budgets and flexible budgets are those budgets which indicate the budgeted values for actual output.

The flexible-budget variance is favorable or unfavorable.

Answer 13

(4)

To determine

Flexible-Budget Variance:

It reports the actual results over the results of flexible budgets and flexible budgets are those budgets which indicate the budgeted values for actual output.

The flexible-budget variance is favorable or unfavorable.

Answer 14

(5)

To determine

Variable Cost:

The cost which fluctuates on the basis of the output level produced. The variable cost and output shares a direct relationship.

Fixed Cost:

The cost which does not fluctuate on the basis of the output level produced. It remains same, no matter output increases or decreases.

To identify: The amount of manufacturing overhead is favorable or unfavorable.

Answer 15

(5)

To determine

Variable Cost:

The cost which fluctuates on the basis of the output level produced. The variable cost and output shares a direct relationship.

Fixed Cost:

The cost which does not fluctuate on the basis of the output level produced. It remains same, no matter output increases or decreases.

To identify: The amount of manufacturing overhead is favorable or unfavorable.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 8 - How do managers plan for variable overhead costs?Ch. 8 - How does the planning of fixed overhead costs...Ch. 8 - How does standard costing differ from actual...Ch. 8 - What are the steps in developing a budgeted...Ch. 8 - What are the factors that affect the spending...Ch. 8 - Assume variable manufacturing overhead is...Ch. 8 - Describe the difference between a direct materials...Ch. 8 - What are the steps in developing a budgeted fixed...Ch. 8 - Why is the flexible-budget variance the same...Ch. 8 - Explain how the analysis of fixed manufacturing...

Spending Variance: It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production. To identify: . The spending variance is favorable or unfavorable.

Spending Variance: It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production. To identify:. The spending variance is favorable or unfavorable.

Efficiency Variance: It indicates the quantity of actual input over the budgeted input quantity at the budgeted rate. To identify: The efficiency variance is favorable or unfavorable.

Flexible-Budget Variance: It reports the actual results over the results of flexible budgets and flexible budgets are those budgets which indicate the budgeted values for actual output. The flexible-budget variance is favorable or unfavorable.

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Chapter 8 Solutions

Spending Variance:

It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production.

To identify:. The spending variance is favorable or unfavorable.

Efficiency Variance:

It indicates the quantity of actual input over the budgeted input quantity at the budgeted rate.

To identify: The efficiency variance is favorable or unfavorable.

Flexible-Budget Variance:

It reports the actual results over the results of flexible budgets and flexible budgets are those budgets which indicate the budgeted values for actual output.

The flexible-budget variance is favorable or unfavorable.