Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches Aretha Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour $4.70 Actual variable overhead costs $335,750 Actual direct labor hours worked (AH) 69,200 Actual production in units 14,000 Standard hours (SH) allowed for actual units produced 70,000 Required: 1. Using the columnar approach, calculate the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable (F) or Unfavorable (U). (1) Actual VOH (2) AH x SVOR (3) SH x SVOR U Spending Efficiency 2. Using the formula approach, calculate the variable overhead spending variance. Enter amount as a positive number and select Favorable or Unfavorable. Unfavorable 3. Using the formula approach, calculate the variable overhead efficiency variance. Enter amount as a positive number and select Favorable or Unfavorable. Favorable 4. Calculate the total variable overhead variance. Enter amount as a positive number and select Favorable or Unfavorable. Unfavorable
Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches Aretha Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour $4.70 Actual variable overhead costs $335,750 Actual direct labor hours worked (AH) 69,200 Actual production in units 14,000 Standard hours (SH) allowed for actual units produced 70,000 Required: 1. Using the columnar approach, calculate the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable (F) or Unfavorable (U). (1) Actual VOH (2) AH x SVOR (3) SH x SVOR U Spending Efficiency 2. Using the formula approach, calculate the variable overhead spending variance. Enter amount as a positive number and select Favorable or Unfavorable. Unfavorable 3. Using the formula approach, calculate the variable overhead efficiency variance. Enter amount as a positive number and select Favorable or Unfavorable. Favorable 4. Calculate the total variable overhead variance. Enter amount as a positive number and select Favorable or Unfavorable. Unfavorable
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 7CE: Variances Refer to Cornerstone Exercise 9.6. Required: 1. Calculate the variable overhead spending...
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39 looking for the columnar solution in the attachment.
Transcribed Image Text:Variable Overhead Spending and Efficiency Variances, Columnar and Formula Approaches
Aretha Company provided the following information:
Standard variable overhead rate (SVOR) per direct labor hour
$4.70
Actual variable overhead costs
$335,750
Actual direct labor hours worked (AH)
69,200
Actual production in units
14,000
Standard hours (SH) allowed for actual units produced
70,000
Required:
1. Using the columnar approach, calculate the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable (F) or Unfavorable (U).
(1) Actual VOH
(2) AH x SVOR
(3) SH x SVOR
Spending
Efficiency
2. Using the formula approach, calculate the variable overhead spending variance. Enter amount as a positive number and select Favorable or Unfavorable.
Unfavorable
3. Using the formula approach, calculate the variable overhead efficiency variance. Enter amount as a positive number and select Favorable or Unfavorable.
Favorable
4. Calculate the total variable overhead variance. Enter amount as a positive number and select Favorable or Unfavorable.
Unfavorable
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