Spending Variance: It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production. Production-Volume Variance: It reports that amount which is result of the multiplication of difference between actual output and budgeted output of particular period with the budgeted rate. This variance indicates the production efficiency of a company. To prepare: . The variance analysis of fixed overhead .

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Answer 1

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Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 8, Problem 8.19E

1.

To determine

Spending Variance:

It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production.

Production-Volume Variance:

It reports that amount which is result of the multiplication of difference between actual output and budgeted output of particular period with the budgeted rate. This variance indicates the production efficiency of a company.

To prepare:. The variance analysis of fixed overhead.

2.

To determine

Fixed Cost:

The cost which does not fluctuate on the basis of the output level produced. It remains same, no matter output level increases or decreases.

The amount of fixed overhead is under-allocated or over-allocated.

3.

To determine

To explain: The overview of results and reason for it.

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Answer 2

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 8, Problem 8.19E

1.

To determine

Spending Variance:

It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production.

Production-Volume Variance:

It reports that amount which is result of the multiplication of difference between actual output and budgeted output of particular period with the budgeted rate. This variance indicates the production efficiency of a company.

To prepare:. The variance analysis of fixed overhead.

2.

To determine

Fixed Cost:

The cost which does not fluctuate on the basis of the output level produced. It remains same, no matter output level increases or decreases.

The amount of fixed overhead is under-allocated or over-allocated.

3.

To determine

To explain: The overview of results and reason for it.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 8, Problem 8.19E

1.

To determine

Spending Variance:

It indicates the amount of actual cost incurred for actual production over the estimated or expected cost for the same level of production.

Production-Volume Variance:

It reports that amount which is result of the multiplication of difference between actual output and budgeted output of particular period with the budgeted rate. This variance indicates the production efficiency of a company.

To prepare:. The variance analysis of fixed overhead.

2.

To determine

Fixed Cost:

The cost which does not fluctuate on the basis of the output level produced. It remains same, no matter output level increases or decreases.

The amount of fixed overhead is under-allocated or over-allocated.

3.

To determine

To explain: The overview of results and reason for it.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 8, Problem 8.19E

1.

To determine