overall (or net) overhead variance

Q: The Claus Company uses standard costing for the single product the company makes and sells. The…

A: Variance is considered as the difference between budgeted value and actual results. The management…

Q: Rizwan Manufacturing Corporation has a standard cost system in which it applies manufacturing…

A: Variable overhead are those overhead which is not fixed at the time of manufacturing of the good.…

Q: Overhead information for Cran-Mar Company for October follows:           Total factory overhead…

A: Production volume variance:   Production volume variance is a statistic used by businesses to…

Q: AirPro Corp. reports the following for November. Compute the total overhead variance and…

A: Given: Incurred factory overhead in total = $ 28,175 Variable overhead = $ 3.10 per unit Fixed…

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

A: Labor efficiency variance = (standard direct labor hours allowed - actual direct labor…

Q: Ferro Enterprises, Inc., uses a standard cost system in which it applies manufacturing overhead to…

A: Given: Applied overhead cost = P52,000

Q: Agus, Inc. uses standard costing for the accounting for its product. The budget officer provided the…

A: Material usage variance refers to the variance in the actual direct material cost from the standard…

Q: Viger Corporation has a standard cost system in which it applies manufacturing overhead to products…

A: Variable Overhead Rate Variance: It is a variance incurred when there is a difference between actual…

Q: The following data pertains to the month of October for ElmCo. when production was budgeted to be…

A: Fixed overhead volume variance is the amount of difference between the overhead absorbed/applied and…

Q: The Claus Company uses standard costing for the single product the company makes and sells. The…

A: Solution....   (A).  Labor efficiency variance  = (Standard hours - actual hours ) * standard rate…

Q: Reddy Corporation has collected the following data for the month of June: Actual total factory…

A:

Q: Information on Kimble Company's direct labor costs for the month of January is as follows: Actual…

A: Note:We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: The direct materials quantity variance is

A: Direct material cost variance: direct material variance is variance analysis done by the company to…

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Formula: Fixed overhead rate = Budgeted fixed cost / Normal activity hours

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Labor rate variance = (standard rate - actual rate) * actual hours   -1400 = (standard rate -…

Q: A company uses a standard costing system and applies overhead to production based on direct…

A: Fixed overhead budget variance = Budgeted fixed overhead - Actual fixed overhead

Q: Brice Corporation shows the following overhead information for the current period. Actual overhead…

A: Variable overhead price variance  =  Actual overhead -  ( Actual hours x Standard overhead rate )…

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Labor usage variance= Actual hours * Standard rate per hour - Actual hours * Actual rate per hou

Q: Humphrey Manufacturing has the following standards for its production department:   Overhead is…

A: Overhead efficiency variance = (standard direct labor hours  -actual direct labor hours) x  Standard…

Q: Wright Brothers is debating the use of direct labor cost or direct labor hours as the cost…

A: The manufacturing overhead cost is applied to production on the basis of Predetermined overhead…

Q: Viger Corporation has a standard cost system in which it applies manufacturing overhead to products…

A: Solution:- Calculation of Variable overhead rate variance as follows under:-

Q: A company uses a standard costing system and applies overhead to production based on direct…

A: Fixed overhead budget variance = Budgeted fixed overhead - Actual fixed overhead

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Controllable variance = Budgeted overhead (BO)- Actual overhead(AO)

Q: The Claus2 Company uses standard costing for the single product the company makes and sells. The…

A: Labor rate variance refers to the concept which evaluates the gap between the actual expenses…

Q: The following information relates to the Finishing department of Tom company for the overhead,…

A: Answer with explanation are as follows

Q: Taft Corporation uses a standard costing system in which variable manufacturing overhead is assigned…

A: Lets understand the basics. Variable overhead rate variance is a variance between the standard rate…

Q: data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Fixed overhead rate = 9,000/12,000 = 0.75 per hour Variable overhead rate = 2.25 - 0.75 = 1.50 per…

Q: The following information was gathered for Larsen Corp. for the year ending 20xx.   Budgeted…

A: Direct Labors are those labors which are directly involved in a company's workforce for production…

Q: Descamps Incorporated has provided the following data concerning one of the products in its standard…

A: Variable overheads are those indirect costs in the business that changes with change in level of…

Q: Mindanao Enterprises uses standard costing. For the month company reported the following data: I.…

A: Labor efficiency variance = (Actual hours worked - Standard hours allowed)*Standard rate per hour…

Q: What was Badong’s volume variance for November? P2,250 unfavorable P500 favorable P500 unfavorable…

A: Fixed overhead rate = P9,000 / 12000 = P0.75 per labor hour

Q: The following data for May has been provided by Mccawley Corporation.           Denominator…

A: Calculate overhead rate: Overhead rate = Budgeted fixed manufacturing overhead costs / Machine hours…

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: 1. Budgeted Fixed overhead rate = 9,000 / 12,000 = 0.75 2. Total Overhead Application  Rate = 2.25…

Q: Olsen Company uses a standard cost system for its production process. Olsen Company applies overhead…

A: Spending Variance = Actual Overhead - Budget OH/Actual Use Spending…

Q: Standish Company manufactures consumer products and provided the following information for the month…

A: Overhead represents the indirect cost involved in the production process of the company.

Q: Viger Corporation has a standard cost system in which it applies manufacturing overhead to products…

A: Variable overhead rate variance = (Actual hours*Actual rate) - (Actual hours*Standard rate)

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Labor rate variance = (standard rate - actual rate) * actual hours -1400 = (standard rate -…

Q: he data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: A standard costing system is a tool used in accounting to create budgets, manage and control…

Q: Hamilton Pty Ltd uses a standard costing system for product costing. The company uses direct labour…

A: FOH Volume Variance = $ 24,000 (Adverse)

Q: a standard cost system:             Actual direct labor cost, P43,400             Actual hours…

A: SOLUTION FIXED OVERHEAD RATE = BUDGETED FIXED COST / NORMAL ACTIVITY HOURS.

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Two-way analysis takes into account two variances: Overhead controllable variance and overhead…

Q: The Claus Company uses standard costing for the single product the company makes and sells. The…

A: Solution: Labor efficiency variance = P1,600 F (SH - AH) * SR = P1,600 (SH - 3800) * P8 = P1,600…

Q: The following data for february has been provided by Gillard corporation     Denominator level…

A: Compute the budget variance for February: Budget variance = Budgeted overheads - Actual overheads…

Q: The data below relate to the month of November for Badong, Inc. which uses a standard cost system:…

A: Labor rate variance = (standard rate - actual rate) * actual hours   -1400 = (standard rate -…

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.