Budgeted variable overheads = Rs. 8,00,000 Budgeted fixed overheads 5,00,000 Overheads are recovered on the basis of standard machine hours. The company had budgeted for 1,00,000 achine hours for the year. During the budget period the company used 1,10,000 machine hours while it should have used 95,000 achine hours for actual output. Actual variable overheads Rs. 8,00,000 Actual fixed overheads Rs. 4,70,000. Calculate the following variances: () Variable overheads cost variance; (i) Variable overheads spending variance; (iii) Variable overheads efficiency variance; (iv) Fixed overheads cost variance%3; (v) Fixed overheads expenditure variance; (vi) Fixed overheads volume variance; (vii) Fixed overheads efficiency variance; (vii) Fixed overheads capacity variance.
Budgeted variable overheads = Rs. 8,00,000 Budgeted fixed overheads 5,00,000 Overheads are recovered on the basis of standard machine hours. The company had budgeted for 1,00,000 achine hours for the year. During the budget period the company used 1,10,000 machine hours while it should have used 95,000 achine hours for actual output. Actual variable overheads Rs. 8,00,000 Actual fixed overheads Rs. 4,70,000. Calculate the following variances: () Variable overheads cost variance; (i) Variable overheads spending variance; (iii) Variable overheads efficiency variance; (iv) Fixed overheads cost variance%3; (v) Fixed overheads expenditure variance; (vi) Fixed overheads volume variance; (vii) Fixed overheads efficiency variance; (vii) Fixed overheads capacity variance.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 14P: Fargo Co. manufactures products in batches of 100 units per batch. The company uses a standard cost...
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