Q3. A company follows the system of standard costing. The records of the company reveal the following information for the month of May: |Budgeted Actual Number of man-hours Number of working days 8000 8600 20 22 Overhead rate per hour { 1.00 Hours per unit of output 20 Fixed Overheads incurred 7,200 Number of units produced 450 units For the month of May, calculate the following variances for fixed overheads: (0) (i) Overhead Cost variance Overhead Volume variance Overhead Efficiency variance (iv) Overhead Capacity variance (v) Overhead Budget variance (vi) Calendar variance

Q: Boone Manufacturing had worked on two jobs, job 101 and Job 102 last year. The estimated…

A: Total Spending Variance: The difference between the actual (or projected) amount of a cost is…

Q: Sampson Apparel Inc. incurred actual variable overhead expenses of P62,000 in the current year for…

A: Solution: Standard hours for actual production = Nos of units produced *Standard hours per unit =…

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: Cheng company uses a standard cost accounting system. During January, it reported the following…

A: This question deals with the preparation of income statement for management. For preparing that, We…

Q: Armstrong Products applies fixed overhead at a rate of P3 per direct labor hour. Each unit produced…

A: Fixed overhead spending variance = Actual fixed overhead - Budgeted fixed overhead Fixed overhead…

Q: The Pangasinan Company has a standard costing system. The following data are available for January:…

A: Variance analysis is a technique used in management or managerial accounting, through the help of…

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: ompute the direct materials cost variance using the 2-way method Shepherd Corporation has the…

A: Direct material variance refers to the difference between the standards and the actual data relating…

Q: manufacturing company that has only one product has established the following standards for its…

A: The variance is the difference between the actual data and standard output of the production.

Q: Summit Company provide the cost data for the month of January Inventories: January 1 January 31…

A: The cost of goods sold refers to the direct costs of manufacturing the commodities supplied by a…

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: For the month of August, M Company’s records disclosed the following data relating to direct labor:…

A: Standard costing means where standard is set for various cost element and actual cost is then…

Q: A company uses a standard absorption costing system. Last month budgeted production was 8,000 units…

A: Overhead Cost It includes all the indirect expenses incurred by an organization for operating a…

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

A:

Q: The following information pertains to UV company. The direct labor standards for a product are 5…

A: Variance analysis is performed to find the deviations by comparing actual performance done with the…

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

A: 1. Variable Overhead Rate Variance - This Variance shows the Variable Overhead Spending Variance…

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 following standards for variable manufacturing overhead have been established for a company that…

A: Standard hours= Output* Standard hours per unit                          = 250*6.6 hours per unit…

Q: Mandy Company has the following information from last month:     Standard direct labor hours for…

A: Direct labour cost is cost of labour which is directly engaged in production or manufacturing.…

Q: The following standards for variable manufacturing overhead have been established for a company that…

A: Variable overhead efficiency variance is  calculated by multiply the standard variable overhead rate…

Q: From the following information for Alfred Industries, compute the overhead spending variance and the…

A: Overhead Spending Variance:

Q: Selected operating information on three different companies for a recent year is given below.…

A: FIXED OVERHEAD VOLUME VARIANCE IS THE DIFFERENCE BETWEEN THE ALLOCATED FIXED OVERHEAD COST AND THE…

Q: The data below relate to the month of november for badong, inc. which uses a standard cost system:…

A: Formula: Fixed factory overhead = Budgeted fixed costs / Normal activity in hours

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

A: Formula: Variable overhead efficiency variance = ( Standard hours - Actual hours ) x Standard rate

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 following standards for variable overhead have been established for a company that makes only…

A: The term "variable overhead efficiency variance" refers to both the impact of the discrepancy…

Q: The Henry company made the following data available from its accounting records and reports.…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Prepare an income statement for management for the month ended January 31, 2020 with the given…

A: Standard costing is an costing method in which it was used to identify variances between actual and…

Q: Ivanhoe Company's overhead rate was based on estimates of $199 200 for overhead costs and 19,920…

A: Total Overhead Cost Variance is the difference between the total overhead absorbed and the actual…

Q: Standard labor-hour per unit of output     8.5 hours Standard labor rate ₱15.00 per hour The…

A: In the given case, variable overhead is labour cost. Hence we need to find out the labour rate…

Q: Selected data for the Palawan Manufacturing Company for the year 2014 follow: Actual for year…

A: Overhead Variance: The difference between real overhead and applied overhead is referred to as…

Q: Unit VIII QUESTION 6

A: The variance is the difference between standard data and actual production results. The labor…

Q: The following information describes a company’s direct labor usage in a recent period.…

A: Direct Labor Efficiency Variance: Direct Labor Efficiency Variance is also known as the Direct Labor…

Q: Williams Corporation reports the following direct labor information for November: Standard rate $…

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

Q: The following information pertains to Boomerang Company's direct labor for March: Standard direct…

A: Formula: Labor rate variance = ( Actual hours x actual rate ) - ( Actual hours x standard rate )…

Q: The following information pertains to Boomerang Company's direct labor for March: Standard DL…

A: Variance refers to a change between the expected value and the actual result. This term is usually…

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

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

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: 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 Litton Company has established standards as follows: Direct material Direct Labor Variable…

A: Labour Rate Variance :— It is the difference between standard labour cost & actual labour cost.…

Q: Remember that we assume cost is applied using the standard costing. Harper's total overhead…

A: Spending Variance = Actual Total Overhead - Budgeted Overhead = 1600000 - (Fixed overhead + Variable…

Q: The following standards for variable manufacturing overhead have been established for a company that…

A:

Q: 1.  What is the variable overhead spending variance? 2. Using the three-variance approach, what is…

A: Variable Overhead Spending Variance = Actual Variable overhead - (Variable Overhead per hour x…

Q: Using the following information                 Actual direct labor hours used,…

A: Note: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered…

Q: At the end of the year, Era Sdn. Bhd. provided the following actual information: Overhead=RM 412,600…

A: Overhead variance for the year = Actual overhead - Applied overhead where, Applied overhead = 75% of…

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.