The following data for february has been provided by Gillard corporation     Denominator level of activity  3700 Dudgeted fixed manufacturing overhead costs  68820 Actual level of activity  4100 Standard machine-hours allowed for the actual output 4000 Actual fixed manufacturing overhead costs 69960 Fixed component of the predetermined overhead rate 18.6     Compute the budget variance for February            Compute the volume variance for February

Q: NUBD Company uses a standard cost system and prepared the following budget at normal capacity for…

A: The question is based on the concept of Cost Accounting.

Q: The following information is available from the Terry Company:   Actual total factory overhead…

A: Formula: Applied Fixed overhead = Standard rate x Standard hours.

Q: Overhead information for Cran-Mar Company for October follows:           Total factory overhead…

A: Production volume variance:   Production volume variance is a statistic used by businesses to…

Q: AirPro Corp. reports the following for November. Compute the total overhead variance and…

A: Given: Incurred factory overhead in total = $ 28,175 Variable overhead = $ 3.10 per unit Fixed…

Q: During May, 6,000 units were produced and the fixed overhead budget variance was P 2,000 favorable.…

A: Solution:- Calculation of Fixed overhead if During May, 6,000 units were produced and the fixed…

Q: Marv Company's direct labor costs for manufacturing its only product were as follows for October:…

A:

Q: The following information relates to Finishing department of Tom company for the fourth quarter:…

A: SOLUTION- EXPLANATION- SPENDING VARIANCE = ACTUAL FACTORY OVERHEAD - FLEXIBLE BUDGETED FACTORY…

Q: The following information relates to Pasko Company for the 4th quarter of the current year: Actual…

A: Solution: Fixed overhead variance is based on the difference of applied fixed overhead and budgetd…

Q: Viger Corporation has a standard cost system in which it applies manufacturing overhead to products…

A: Variable Overhead Rate Variance: It is a variance incurred when there is a difference between actual…

Q: The following data pertains to the month of October for ElmCo. when production was budgeted to be…

A: Fixed overhead volume variance is the amount of difference between the overhead absorbed/applied and…

Q: A has a normal capacity of 120 machines, working 8 hrs per day of 25 days in a month. company The…

A: Standard costing is used to compare the actual results with the budgeted figures and to take better…

Q: Reddy Corporation has collected the following data for the month of June: Actual total factory…

A:

Q: The following information pertains to UV company. The direct labor standards for a product are 5…

A: Variance analysis is performed to find the deviations by comparing actual performance done with the…

Q: Viger Corporation has a standard cost system in which it applies manufacturing overhead to products…

A: 1. Variable Overhead Rate Variance - This Variance shows the Variable Overhead Spending Variance…

Q: A company is examining its Manufacturing Overhead for the year. You have been asked to examine the…

A: Variance Analysis - It is summary and analysis of difference between planned and actual numbers. It…

Q: Okin Inc.'s flexible budget performance report for last month shows that actual indirect materials…

A: Cost formula per machine-hour for indirect materials cost = Indirect material cost in flexible…

Q: From the following information for Alfred Industries, compute the overhead spending variance and the…

A: Overhead Spending Variance:

Q: Baxter Corporation’s master budget calls for the production of 5,200 units per month and $162,240…

A: The question is based on the concept of Cost Accounting.

Q: Selected operating information on three different companies for a recent year is given below.…

A: FIXED OVERHEAD VOLUME VARIANCE IS THE DIFFERENCE BETWEEN THE ALLOCATED FIXED OVERHEAD COST AND THE…

Q: Ellis Company's labor information for September is as follows: Direct labor hourly rate paid $31.00…

A: Variance: It is the difference between the actual cost and  the standard cost. Direct Labour Rate…

Q: Viger Corporation has a standard cost system in which it applies manufacturing overhead to products…

A: Solution:- Calculation of Variable overhead rate variance as follows under:-

Q: A company uses a standard costing system and applies overhead to production based on direct…

A: Fixed overhead budget variance = Budgeted fixed overhead - Actual fixed overhead

Q: Dubberly Corporation's cost formula for its manufacturing overhead is $31,400 per month plus $56 per…

A: The activity variance for manufacturing overhead in March would be closest to $5,600 F

Q: Spiral Company’s budgeted fixed factory overhead cost is P50,000 per month plus a variable factory…

A: Overhead costs refer to the costs which occur in operating activity in a business. It also termed as…

Q: Spiral Company’s budgeted fixed factory overhead cost is P50,000 per month plus a variable factory…

A: Variance analysis helps management to analyzing the reason behind the differences arises between…

Q: Bondi Corporation makes automotive engines. For the most recent month, budgeted production was 3,500…

A: Answer Variable overhead rate variance =Actual hours worked×(Standard overhead rate-Actual overhead…

Q: Selected data for October for Rio Vista Company is shown as follows. The variable overhead sales…

A: The question is based on the concept of Cost Accounting.

Q: Ivanhoe Company's overhead rate was based on estimates of $199 200 for overhead costs and 19,920…

A: Total Overhead Cost Variance is the difference between the total overhead absorbed and the actual…

Q: Normal annual capacity for ABC Company is 72,000 units, with fixed factory overhead budgeted at P…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: che original overhead budget and the actual costs incurred during April for Piccolo, Jariab nead…

A: Variance analysis is an analysis used to recognize the difference between actual behavior and…

Q: The amount of budgeted overhead costs at normal capacity of P240,000 was divided by normal capacity…

A: Total Overhead Variance can be calculated by using the formula below:   Total Overhead Variance =…

Q: Print Works company has collected actual results for the current month as follows: Actual amounts:…

A: Variance is considered as the difference between budgeted value and actual results. The management…

Q: overall (or net) overhead variance

A: Budgeted fixed overhead P3,300 Budgeted variable overhead (3,500 hours * P3) P10,500 Total…

Q: Selected data for the Palawan Manufacturing Company for the year 2014 follow: Actual for year…

A: Overhead Variance: The difference between real overhead and applied overhead is referred to as…

Q: The following information relates to Steele Manufacturing's overhead costs for the month: $35,600…

A: In the business organizations, the benchmark is already established, and the actual performance is…

Q: The following information was gathered for Larsen Corp. for the year ending 20xx.   Budgeted…

A: Direct Labors are those labors which are directly involved in a company's workforce for production…

Q: Williams Corporation reports the following direct labor information for November: Standard rate $…

A: Labor Price variance = (Actual rate per hour - Standard rate per hour)*Actual hours worked Labor…

Q: 6,000 units. During May, Cheshire produced 5,500 units. The budgeted fixed overhead is $60,000 and…

A: (3600 hours /6000 units )*5500 units = 3300  Direct labour  hours Budgeted Fixed overhead is $60,000…

Q: The following data for May has been provided by Mccawley Corporation.           Denominator…

A: Calculate overhead rate: Overhead rate = Budgeted fixed manufacturing overhead costs / Machine hours…

Q: The following information relates to a given department of Mervi Company for the first quarter of…

A: 1)Calculation of the standard hours allowed for good output in this department as follows:- Total…

Q: Marv Company's direct labor costs for manufacturing its only product were as follows for October:…

A: Actual wage rate per direct labor hour (AP) $ 26.00   Standard wage rate per direct labor hour…

Q: The following information relates to the Finishing department of Tom company for the fourth quarter:…

A:

Q: The following information refers to the Finishing Department of Tom Company for the fourth quarter:…

A: Standard costing involves setting-up predetermined cost or expenses estimates. Such predetermined…

Q: Coronado Company applies overhead based on direct labour hours. Two direct labour hours are required…

A: Variable overhead spending variance -    AH (AR - SR) AH = Actual Hours Worked  AR = Actual rate of…

Q: Using the following information                 Actual direct labor hours used,…

A: Note: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered…

Q: budgeted fixed factory overhead cost is P50,000 per month plus a variable factory overhead rate of…

A: Formula: Standard direct labor = Labor hours X labor rate

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.