Viva Products has an estimate practical capacity of 90,000 machine hours, and each unit requires two machine hours. The following data apply to a recent accounting period. Acual variable overhead P240,000 Actual fixed overhead 442,000 Actual machine hours worked 88,000 Actual finished units produced 42,000 Budgeted variable overhead at 90,000 machine hours 200,000 Budgeted Fixed Overhead 450,000 Of the following factors, Baltimore's production volume variance is mostl likely to have been caused by.
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.
Viva Products has an estimate practical capacity of 90,000 machine hours, and each unit requires two machine hours. The following data apply to a recent accounting period.
Acual variable overhead P240,000
Actual fixed overhead 442,000
Actual machine hours worked 88,000
Actual finished units produced 42,000
Budgeted variable overhead at 90,000 machine hours 200,000
Budgeted Fixed Overhead 450,000
Of the following factors, Baltimore's production volume variance is mostl likely to have been caused by.
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