The total overhead budget of a company that uses three level analysis of variances is $140,000...
The total overhead budget of a company that uses three
level analysis of
variances is $140,000 per month, out of which fixed overheads
amount to
$100,000. The budgeted production volume is 5,000 units of output
per
month. The standard time per unit is 4 hours.
During December 2019, the company worked 20,100 hours and
produced
4,800 units. Actual factory overheads incurred during December
2019
amounted to 150,000.
Calculate (i) efficiency variance, (ii) volume variance, and (iii)
expense variance.
Also offer a critical analysis of your answers.
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The total overhead budget of a company that uses three
level analysis of
variances is $140,000...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 34...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 34 setups and 34,000 machine hours to manufacture 8,500 units for the year. Selected data for 2019 follow: Budgeted fixed factory overhead: Setup cost $ 85,000 Other 186,000 $ 271,000 Total factory overhead cost incurred $ 485,000 Variable factory overhead rate: Per setup $ 400 Per machine hour $ 5.00 Total standard machine hours allowed for the units manufactured 27,000 hours Machine hours actually worked...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 40...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 40 setups and 40,000 machine hours to manufacture 8,000 units for the year. Selected data for 2019 follow: Budgeted fixed factory overhead: Setup cost $ 76,800 Other 230,000 $ 306,800 Total factory overhead cost incurred $ 484,000 Variable factory overhead rate: Per setup $ 550 Per machine hour $ 4.00 Total standard machine hours allowed for the units manufactured 28,000 hours Machine hours actually worked...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 20...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 20 setups and 20,000 machine hours to manufacture 5,000 units for the year. Selected data for 2019 follow: Budgeted fixed factory overhead: Setup cost $ 57,000 Other 184,000 $ 241,000 Total factory overhead cost incurred $ 491,000 Variable factory overhead rate: Per setup $ 800 Per machine hour $ 6.00 Total standard machine hours allowed for the units manufactured 24,000 hours Machine hours actually worked...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity i...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 26 setups and 26,000 machine hours to manufacture 6,500 units for the year. Selected data for 2019 follow Budgeted fixed factory overhead: $ 54,600 178,000 Setup cost Other $232,600 $481,000 Total factory overhead cost incurred Variable factory overhead rate: $ 400 $6.00 30,000 34,500 Per setup Per machine hour Total standard machine hours allowed for the units manufactured Machine hours actually worked Actual total number...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 32...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 32 setups and 32,000 machine hours to manufacture 6,400 units for the year. Selected data for 2019 follow: $ 102,400 174,000 $276,400 $496,000 Budgeted fixed factory overhead: Setup cost Other Total factory overhead cost incurred Variable factory overhead rate: Per setup Per machine hour Total standard machine hours allowed for the units manufactured Machine hours actually worked Actual total number of setups Actual number of...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 28...
Alden Company uses a three-variance analysis for factory
overhead variances. Practical capacity is defined as 28 setups and
28,000 machine hours to manufacture 5,600 units for the year.
Selected data for 2019 follow:
Budgeted fixed factory overhead:
Setup cost
$
84,000
Other
186,000
$
270,000
Total factory overhead cost incurred
$
490,000
Variable factory overhead rate:
Per setup
$
850
Per machine hour
$
5.00
Total standard machine hours allowed for the units
manufactured
25,000
hours
Machine hours actually worked...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 123,000 units requiring 492,000 direct labor hours. (Practical capacity is 512,000 hours.) Annual budgeted overhead costs total $811,800, of which $585,480 is fixed overhead. A total of 119,500 units using 490,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $260,700, and...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 129,000 units requiring 516,000 direct labor hours. (Practical capacity is 536,000 hours.) Annual budgeted overhead costs total $861,720, of which $608,880 is fixed overhead. A total of 119,000 units using 514,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $260,100, and...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 126,000 units requiring 504,000 direct labor hours. (Practical capacity is 524,000 hours.) Annual budgeted overhead costs total $826,560, of which $599,760 is fixed overhead. A total of 119,400 units using 502,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $260,100, and...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 124,000 units requiring 496,000 direct labor hours. (Practical capacity is 516,000 hours.) Annual budgeted overhead costs total $828,320, of which $590,240 is fixed overhead. A total of 119,200 units using 494,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $261,300, and...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 26 setups and 26,000 machine hours to manufacture 6,500 units for the year. Selected data for 2019 follow Budgeted fixed factory overhead: $ 54,600 178,000 Setup cost Other $232,600 $481,000 Total factory overhead cost incurred Variable factory overhead rate: $ 400 $6.00 30,000 34,500 Per setup Per machine hour Total standard machine hours allowed for the units manufactured Machine hours actually worked Actual total number...
Alden Company uses a three-variance analysis for factory overhead variances. Practical capacity is defined as 32 setups and 32,000 machine hours to manufacture 6,400 units for the year. Selected data for 2019 follow: $ 102,400 174,000 $276,400 $496,000 Budgeted fixed factory overhead: Setup cost Other Total factory overhead cost incurred Variable factory overhead rate: Per setup Per machine hour Total standard machine hours allowed for the units manufactured Machine hours actually worked Actual total number of setups Actual number of...
Alden Company uses a three-variance analysis for factory
overhead variances. Practical capacity is defined as 28 setups and
28,000 machine hours to manufacture 5,600 units for the year.
Selected data for 2019 follow:
Budgeted fixed factory overhead:
Setup cost
$
84,000
Other
186,000
$
270,000
Total factory overhead cost incurred
$
490,000
Variable factory overhead rate:
Per setup
$
850
Per machine hour
$
5.00
Total standard machine hours allowed for the units
manufactured
25,000
hours
Machine hours actually worked...
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 123,000 units requiring 492,000 direct labor hours. (Practical capacity is 512,000 hours.) Annual budgeted overhead costs total $811,800, of which $585,480 is fixed overhead. A total of 119,500 units using 490,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $260,700, and...
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