Formidable Company collected the following information: Standard costs per unit:   Variable overhead 4 machine hours @ $6 per machine hour Fixed overhead 4 machine hours @ $10 per machine hour     Actual output 20,000 units Denominator (normal capacity) output 21,000 units Actual machine hours 79,000 machine hours Actual variable overhead cost $540,000 Actual fixed overhead cost $810,000 Using the two variance method, what is the volume variance? a.$6,000 (F) b.$40,000 (F) c.$40,000 (U) d.$6,000 (U)

Q: Titus Company produced 6,500 units of a product that required 4.50 standard hours per unit. The…

A:

Q: Hardin Company has the following information available for the current year:   Standard:…

A: Material Price Variance (MPV) = (Standard Price – Actual Price) x Actual Quantity…

Q: Actual fixed overhead expenditure in for the same period is C70,000. The labour force manages to…

A: The fixed overhead expenditure variance = Budgeted overhead - Actual overhead  If the budgeted…

Q: Beverly Company has determined a standard variable overhead rate of $3.90 per direct labor hour and…

A: Standard hours=Actual units×Labor hour per unit=3400×0.50=1700

Q: The following information pertains to ABC Co's 202x manufacturing operations: Standard direct labor…

A: Variable overhead efficiency variance shows the difference between the actual time and the budgeted…

Q: The data below relate to the standards for the sole product of Marshal Corporati August: Standard…

A: The difference between a standard and an actual value is called variance and can be favorable or…

Q: Formidable Company collected the following information: Standard costs per unit:   Variable…

A: Total Variance It is important in the calculation of the variance of the cost which is helpful to…

Q: Western Co. has total budgeted fixed costs of $72,000. Actual production of 5,500 units resulted in…

A: Fixed overhead volume variance = (Budgeted units - Actual units) x  Fixed overhead rate  Fixed…

Q: Use this information to answer the question that follow. The standard costs and actual costs for…

A: Formulas: Fixed overhead variance = Actual fixed cost - Standard fixed cost

Q: The following information was obtained from KMG Manufacturing Company.   Standard Data: Direct…

A: Standards are set in advance. From the standards, actual performance is measured so as to find the…

Q: Bellingham Company produced 3,300 units of product that required 4.5 standard direct labor hours per…

A: Variance is the measure which is used to determine the difference between the budgeted and the…

Q: Hello Company had P400,000 budgeted fixed overhead costs and based its standard on normal activity…

A: The standard cost represents the estimated amount of cost whereas the actual cost is the costs…

Q: Shaw Company produced 730 units, Its overhead allocation base is DLH and its standard amount per…

A: A volume variance can be defined as the difference between the total actual overhead costs and the…

Q: Aretha Company provided the following information: Standard variable overhead rate (SVOR) per…

A: Formula used: 1)Variable overhead spending variance: Variable overhead spending variance=AH(AR-SR)…

Q: A company had net income of $60,000 on their direct (variable) costing Income Statement for a given…

A: According to the Variable costing income statement, the net income =$60,000. In Variable costing the…

Q: Last year, Gladner Company had planned to produce 140,000 units. However, 143,000 units were…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of…

A:

Q: o Yealink Company produces a product that requires 5.0 standard pounds per unit. The standard price…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Stanford Company makes a single product and uses standard costing. Some data concerning this product…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: The following information is available for Marigold’s Hot Dogs: Actual production   11,760 packages…

A: Standard costing is used to compare the budgeted data with the actual results for better managerial…

Q: Garcia Corp’s current year annual budget for variable and fixed overhead costs total $192,500 and…

A: The question is based on the concept of Cost Accounting.

Q: The following information relates to manufacturing overhead for Chapman Company: Standards: Total…

A: Variance is the technique which is being used for the purpose of determining the variations in the…

Q: Venneman Company produced 14,000 units of product that required 4 standard hours per unit. The…

A: The fixed overhead volume variance is the difference between the amount of fixed overhead actually…

Q: What is the amount of the Factory OH Controllable Variance, given the following info: Actual…

A: Controllable Variance = Actual factory overhead – Standard overhead where, Standard overhead =…

Q: The following information relates to manufacturing overhead for Chapman Company: Standards: Total…

A: Absorbed overheads = Actual production x Standard hours allowed per unit x Fixed overhead rate…

Q: Bellingham Company produces a product that requires 2.5 standard pounds per unit. The standard price…

A: Material Cost Variance: The difference between the standard cost of direct materials specified for…

Q: Shown below are the relevant data relating to fixed overhead costs of Calming Balm Corporation for a…

A:

Q: The following variances were computed: Fixed overhead spending variance $24,000 U   Variable…

A: Expenditures of running  business that varies with degree of commercial industrial activity are…

Q: What is the amount of the Factory OH Volume Variance, given the following info: Actual production =…

A: Factory Overhead Volume Variance = Applied Fixed Overheads - Budgeted Fixed Overheads

Q: The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of…

A: Factory Overhead is the indirect cost consisting of indirect material, indirect labor, heating,…

Q: ThingOne Company has the following information available for the past year. They use machine hours…

A: Variable overhead efficiency variance = (Standard machine hours allowed for actual output - Actual…

Q: ToolTime has a standard of 1.5 pounds of materials per unit, at P4 per pound. In producing 2,000…

A: Total material variance = (standard quantity *standard price) - (Actual quantity*Actual price)…

Q: Feagin  Company’s  actual  variable  overhead  was  $73,000.  Actual  direct labor hours  were…

A: Formulas: Variable overhead spending variance = (standard variable overhead rate - actual variable…

Q: The standard and actual cost data of M/s. ABC Company are as follows:              Standard Raw…

A: Solution: Material Price Variance: Direct materials price variance = (Standard price - Actual price)…

Q: Shaw Company produced 730 units. ts overhead allocation base is OLH and its standard amount per…

A: Volume variance refers to the difference among the actual sold quantity as well as the budgeted…

Q: Actual total overhead $75,000 $32,500 10,000 9,500 $ 4.50 Actual fixed overhead Actual machine hours…

A: Efficiency variances: It arises when standard direct labor hours expected for actual production…

Q: In Zinchin Ind where Standard Costing is followed, the budgeted fixed overheads for a budgeted…

A: Standard costing is an method used to identify variances between actual and budgeted figures, in…

Q: Determine the (a) volume variance, (b) controllable variance, and (c) total factory overhead cost…

A: Solution:- Given, The standard factory overhead rate = $12 per machine hour…

Q: Venneman Company produced 14,000 units of product that required 4 standard hours per unit. The…

A: Factory Overhead volume variance = (Actual hours - Budgeted hours) x  Standard fixed overhead cost

Q: ThingOne Company has the following information available for the past year. They use machine hours…

A:

Q: ThingOne Company has the following information available for the past year. They use machine hours…

A: Actual variable overhead = Actual total overhead - Actual fixed overhead = $81140-33500 = $47,640

Q: Viva Products has an estimate practical capacity of 90,000 machine hours, and each unit requires two…

A: Viva Products has an estimate practical capacity of 90,000 machine hours, and each unit requires two…

Q: Adams Company’s standard labor cost of producing one unit of Product DD is 4.00 hours at the rate of…

A: (a) Compute direct labor variance.

Q: Rose Ltd is a manufacturing company that uses standard costing and variance analysis to control its…

A: Standard costing means where the standard is set for various types of cost and then devitaion is…

Q: DRS Manufacturing has the following standards for one of its products:  Table 9: Production Costs…

A: Material price variance = (Actual price per meter - Standard price per meter )*Actual quantity…

Q: The following data relate to direct labor costs for the current period: Standard costs 6,000 hours…

A: Direct labor rate variance is the difference between actual cost at actual hours and standard cost…

Q: Krueger Corporation in Washington, D.C., U.S., recently implemented a standard cost system. The…

A: Given, Variable Overhead Rate = $2 Fixed Overhead Rate = $10 Normal level of production = 1,200…

Q: Use this information to answer the question that follow. The standard costs and actual costs for…

A: Variable factory overhead controllable variance = Standard cost - Actual cost

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.