Efficiency variance and flexible- budget variance for March 2014. Given information: March 2014, Actual quantity of input hours is 15,000 hours. Budgeted quantity of input for actual output is 14,850 hours Budgeted overhead rate is $6 per hour. Spending variance is $500 (U). Efficiency variance as computed is $900 (U).

Question

Want to see the full answer?

Answer 1

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 8.41P

1.

To determine

To compute: Efficiency variance and flexible-budget variance for March 2014.

Given information:

March 2014,

Actual quantity of input hours is 15,000 hours.

Budgeted quantity of input for actual output is 14,850 hours

Budgeted overhead rate is $6 per hour.

Spending variance is $500 (U).

Efficiency variance as computed is $900 (U).

2.

To determine

To compute: Production-volume and flexible-budget variances.

Given information:

Spending variance is $500.

Total budgeted variable overhead cost is $108,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Calculate the ROE for smith manufacturing if they have

Please provide the accurate answer to this general accounting problem using appropriate methods.

need help this question

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 8.41P

1.

To determine

To compute: Efficiency variance and flexible-budget variance for March 2014.

Given information:

March 2014,

Actual quantity of input hours is 15,000 hours.

Budgeted quantity of input for actual output is 14,850 hours

Budgeted overhead rate is $6 per hour.

Spending variance is $500 (U).

Efficiency variance as computed is $900 (U).

2.

To determine

To compute: Production-volume and flexible-budget variances.

Given information:

Spending variance is $500.

Total budgeted variable overhead cost is $108,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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 8.41P

1.

To determine

To compute: Efficiency variance and flexible-budget variance for March 2014.

Given information:

March 2014,

Actual quantity of input hours is 15,000 hours.

Budgeted quantity of input for actual output is 14,850 hours

Budgeted overhead rate is $6 per hour.

Spending variance is $500 (U).

Efficiency variance as computed is $900 (U).

2.

To determine

To compute: Production-volume and flexible-budget variances.

Given information:

Spending variance is $500.

Total budgeted variable overhead cost is $108,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

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 8.41P

1.

To determine

To compute: Efficiency variance and flexible-budget variance for March 2014.

Given information:

March 2014,

Actual quantity of input hours is 15,000 hours.

Budgeted quantity of input for actual output is 14,850 hours

Budgeted overhead rate is $6 per hour.

Spending variance is $500 (U).

Efficiency variance as computed is $900 (U).

2.

To determine

To compute: Production-volume and flexible-budget variances.

Given information:

Spending variance is $500.

Total budgeted variable overhead cost is $108,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 8.41P

1.

To determine

To compute: Efficiency variance and flexible-budget variance for March 2014.

Given information:

March 2014,

Actual quantity of input hours is 15,000 hours.

Budgeted quantity of input for actual output is 14,850 hours

Budgeted overhead rate is $6 per hour.

Spending variance is $500 (U).

Efficiency variance as computed is $900 (U).

2.

To determine

To compute: Production-volume and flexible-budget variances.

Given information:

Spending variance is $500.

Total budgeted variable overhead cost is $108,000.

Answer 6

Chapter 8, Problem 8.41P

1.

To determine

To compute: Efficiency variance and flexible-budget variance for March 2014.

Given information:

March 2014,

Actual quantity of input hours is 15,000 hours.

Budgeted quantity of input for actual output is 14,850 hours

Budgeted overhead rate is $6 per hour.

Spending variance is $500 (U).

Efficiency variance as computed is $900 (U).

Answer 7

Chapter 8, Problem 8.41P

1.

To determine

To compute: Efficiency variance and flexible-budget variance for March 2014.

Given information:

March 2014,

Actual quantity of input hours is 15,000 hours.

Budgeted quantity of input for actual output is 14,850 hours

Budgeted overhead rate is $6 per hour.

Spending variance is $500 (U).

Efficiency variance as computed is $900 (U).

Answer 8

2.

To determine

To compute: Production-volume and flexible-budget variances.

Given information:

Spending variance is $500.

Total budgeted variable overhead cost is $108,000.

Answer 9

2.

To determine

To compute: Production-volume and flexible-budget variances.

Given information:

Spending variance is $500.

Total budgeted variable overhead cost is $108,000.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

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...

To compute: Production-volume and flexible-budget variances. Given information: Spending variance is $500. Total budgeted variable overhead cost is $108,000.

Want to see the full answer?

Chapter 8 Solutions

To compute: Production-volume and flexible-budget variances.

Given information:

Spending variance is $500.

Total budgeted variable overhead cost is $108,000.