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In: Accounting
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 $580,560 is fixed overhead. A total of 119,200 units using 490,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $260,100, and actual fixed overhead costs were $555,250.
Required:
1. Compute the fixed overhead spending and volume variances.
| Fixed Overhead Spending Variance | $ | Favorable |
| Fixed Overhead Volume Variance | $ | Unfavorable |
2. Compute the variable overhead spending and efficiency variances. Do not round intermediate calculations
| Variable Overhead Spending Variance | $ | Unfavorable |
| Variable Overhead Efficiency Variance | $ | Unfavorable |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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 $818,400, of which $585,280 is fixed overhead. A total
of 119,400 units using 494,000 direct labor hours were produced
during the year. Actual variable overhead costs for the year were
$260,600, 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 123,000 units requiring 492,000
direct labor hours. (Practical capacity is 512,000 hours.) Annual
budgeted overhead costs total $816,720, 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 $261,100, 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 125,000 units requiring 500,000
direct labor hours. (Practical capacity is 520,000 hours.) Annual
budgeted overhead costs total $830,000, of which $585,000 is fixed
overhead. A total of 119,300 units using 498,000 direct labor hours
were produced during the year. Actual variable overhead costs for
the year were $260,000, 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 130,000 units requiring 520,000
direct labor hours. (Practical capacity is 540,000 hours.) Annual
budgeted overhead costs total $842,400, of which $608,400 is fixed
overhead. A total of 119,000 units using 518,000 direct labor hours
were produced during the year. Actual variable overhead costs for
the year were $261,900, 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 119,300 units using 514,000 direct labor hours were produced
during the year. Actual variable overhead costs for the year were
$261,800, 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 119,300 units using 514,000 direct labor hours were produced
during the year. Actual variable overhead costs for the year were
$261,800, 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 $821,520, of which $594,720 is fixed overhead. A total
of 119,300 units using 502,000 direct labor hours were produced
during the year. Actual variable overhead costs for the year were
$260,300, 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 127,000 units requiring 508,000
direct labor hours. (Practical capacity is 528,000 hours.) Annual
budgeted overhead costs total $833,120, of which $604,520 is fixed
overhead. A total of 119,400 units using 506,000 direct labor hours
were produced during the year. Actual variable overhead costs for
the year were $260,300, 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 130,000 units requiring 520,000
direct labor hours. (Practical capacity is 540,000 hours.) Annual
budgeted overhead costs total $837,200, of which $603,200 is fixed
overhead. A total of 119,400 units using 518,000 direct labor hours
were produced during the year. Actual variable overhead costs for
the year were $261,200, 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 123,000 units requiring 492,000
direct labor hours. (Practical capacity is 512,000 hours.) Annual
budgeted overhead costs total $811,800, of which $580,560 is fixed
overhead. A total of 119,100 units using 490,000 direct labor hours
were produced during the year. Actual variable overhead costs for
the year were $261,900, and...
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