Fixed Overhead Spending/ Budget Variance : The Fixed Overhead budget variance is the difference between the actual fixed overhead cost and budgeted fixed overhead cost. The formula to calculate the Fixed Overhead budget Variance is as follows: F i x e d O v e r h e a d B u d g e 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: The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost the formula to calculate the Fixed Overhead volume Variance is as follows: 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 = A l l o c a t e d 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 Note: The allocated fixed overhead is calculated with the help of following formula: A l l o c a t e d f i x e d O v e r h e a d c o s t = Standard h o u r s × P r e d e t e r m i n e d f i x e d O v e r h e a d a l l o c a t i o n r a t e Journal Entry : In journal entry company records all the business transactions which are in monetary form. Company records the transaction on debit and credit in journal entry which are always equal. To indicate: The Journal entry for Fixed Overhead Cost and related variances.

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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 9, Problem 4GAP

To determine

Concept introduction:

Fixed Overhead Spending/ Budget Variance:

The Fixed Overhead budget variance is the difference between the actual fixed overhead cost and budgeted fixed overhead cost. The formula to calculate the Fixed Overhead budget Variance is as follows:

Fixed Overhead Budget Variance = Actual Fixed Overhead − Budgeted Fixed Overhead

Fixed Overhead Volume variance:

The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost the formula to calculate the Fixed Overhead volume Variance is as follows:

Fixed Overhead Volume Variance = Allocated Fixed Overhead − Budgeted Fixed Overhead

Note: The allocated fixed overhead is calculated with the help of following formula:

Allocated fixed Overhead cost = Standard hours ×Predetermined fixed Overhead allocation rate

Journal Entry: In journal entry company records all the business transactions which are in monetary form. Company records the transaction on debit and credit in journal entry which are always equal.

To indicate:

The Journal entry for Fixed Overhead Cost and related variances.

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As part of your Portfolio Project due in Module 8, your job is to identify new opportunities for your company water purification products in underserved international markets. . Describe the company and the products and services created by this company. Part of your employment responsibility includes completing the following two reports to support your recommendation for an international expansion: Conduct a Market Intelligence Assessment: This is a broad overview of the target country. The overview should include information about its political, legal, cultural, economic, and technological characteristics. Provide supporting statistics and indicators for each component of the macroenvironment. Conduct a Business Environment Analysis: To do so, determine key national characteristics that will affect the marketing of the product. Comment on any potential ethical implications.

Answer 2

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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 9, Problem 4GAP

To determine

Concept introduction:

Fixed Overhead Spending/ Budget Variance:

The Fixed Overhead budget variance is the difference between the actual fixed overhead cost and budgeted fixed overhead cost. The formula to calculate the Fixed Overhead budget Variance is as follows:

Fixed Overhead Budget Variance = Actual Fixed Overhead − Budgeted Fixed Overhead

Fixed Overhead Volume variance:

The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost the formula to calculate the Fixed Overhead volume Variance is as follows:

Fixed Overhead Volume Variance = Allocated Fixed Overhead − Budgeted Fixed Overhead

Note: The allocated fixed overhead is calculated with the help of following formula:

Allocated fixed Overhead cost = Standard hours ×Predetermined fixed Overhead allocation rate

Journal Entry: In journal entry company records all the business transactions which are in monetary form. Company records the transaction on debit and credit in journal entry which are always equal.

To indicate:

The Journal entry for Fixed Overhead Cost and related variances.

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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 9, Problem 4GAP

To determine

Concept introduction:

Fixed Overhead Spending/ Budget Variance:

The Fixed Overhead budget variance is the difference between the actual fixed overhead cost and budgeted fixed overhead cost. The formula to calculate the Fixed Overhead budget Variance is as follows:

Fixed Overhead Budget Variance = Actual Fixed Overhead − Budgeted Fixed Overhead

Fixed Overhead Volume variance:

The Fixed Overhead Volume variance is the difference between the allocated fixed overhead cost and the budgeted fixed overhead cost the formula to calculate the Fixed Overhead volume Variance is as follows:

Fixed Overhead Volume Variance = Allocated Fixed Overhead − Budgeted Fixed Overhead

Note: The allocated fixed overhead is calculated with the help of following formula:

Allocated fixed Overhead cost = Standard hours ×Predetermined fixed Overhead allocation rate

Journal Entry: In journal entry company records all the business transactions which are in monetary form. Company records the transaction on debit and credit in journal entry which are always equal.

To indicate:

The Journal entry for Fixed Overhead Cost and related variances.

Expert Solution & Answer

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Check out a sample textbook solution

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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 9, Problem 4GAP

To determine