+1-415-670-9189
info@expertsmind.com
Compute the overhead spending variance and the volume
Course:- Accounting Basics
Reference No.:- EM13601498




Assignment Help
Assignment Help >> Accounting Basics

Standard manufacturing overhead based on normal monthly volume:

  • Fixed ($302,300 ÷ 20,000 units) $ 15.12
  • Variable ($100,000 ÷ 20,000 units) 5.00 $ 20.12
  • Units actually produced in current month 18,000 units
  • Actual overhead costs incurred (including $300,000 fixed) $ 383,800

Compute the overhead spending variance and the volume variance. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.)

  • Overhead spending variance $ Favourable
  • Overhead volume variance $ Unfavourable



Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the s
Is it true that the "flatter" or more nearly horizontal, the demand curve for a particular firm's stock, and the less important investors regard the signaling effect of the
Cactus does not make any distributions during 2008, but had $200,000 of ordinary income. In 2009, ordinary income was $100,000 and distributions were $100,000. What is Tex's
A number of companies voluntarily prepare segment reports beyond what is required by regulation. Given the difficulties faced by regulators in developing rules for segment r
Determine the cost assigned to ending inventory and to cost of goods sold using (a) specific identification, (b) weighted average, (c) FIFO, and (d) LIFO.
Evaluate and describe two types of temporary regulations and explore the effects on the taxpayer. Discuss the weight of the temporary regulation and what issues may strength
A company purchased land for $80,000 cash. Real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an old building on the land before construction of
Tell Mr. Lee, in detail, the main internal control weaknesses in the situation described. What can be the impact on the business because of these weaknesses - Give him sugge