Li Pong company uses a standard costing system. Last year they incurred $100,000 of Variable Overhead...

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Li Pong company uses a standard costing system. Last year they incurred $100,000 of Variable Overhead and $317,000 of Fixed O Druid Company makes a single product and uses a standard costing system that applies overhead on the basis of direct labor ho

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Answer 1

Answer #1

Q1)
	Net Variance = $2000-2000+9000-3000

		=6000(F)

	Overhead Variance = Applied Variance - Actual Variance

	6000 (F) = Applied Variance - ($100000+317000)

	Applied Variance = 100000+317000+6000

		$ 4,23,000



Q2)	Variable Overhead Spending Variance = Standard Overhead - Actual Overhead'

		= (70000/500 units *300 units) - ($40000)

		=$42000 -40000

		= $2000 (U)

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Answer 2

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