Variable overhead efficiency variance, Cost Accounting

Variable Overhead Efficiency Variance

Budget for December 2003;

Shs.

Fixed Overheads

11,480

Variable Overheads

13,120

Labour Hours

3,280 hours

Standard Hours of Production

3,280 hours

Actual Results for December 2003

Shs.

Fixed Overheads

12,100

Variable Overheads

13,930

Actual Labour Hours

3,150/hours

Standard Hours of Production

3,280 hours

Variable Overhead Efficiency Variance = (actual labour hours x V.O.A.R) - (standard hour of production x V.O.A.R)

                                                     = (3,150 x 4) - (3,230 x 4)

                                                     = Shs.12,600 - Shs.12,920

                                                     = Shs.320  Favourable

The variance is favourable since we spent less than the standard cost.

Posted Date: 2/7/2013 7:13:11 AM | Location : United States







Related Discussions:- Variable overhead efficiency variance, Assignment Help, Ask Question on Variable overhead efficiency variance, Get Answer, Expert's Help, Variable overhead efficiency variance Discussions

Write discussion on Variable overhead efficiency variance
Your posts are moderated
Related Questions

Accounting for Job Order Costing 1.  Direct Labor  Dr W.I.P. Control Account Cr Cash Account 2.  Accrued Direct Wages Dr W.I.P. Control Account Cr Wages

Under a contract with the provincial government, ChemLabs Inc. analyzes the chemical and bacterial composition of well water in various municipalities in the interior of British Co

Describe the concept of full cost recovery with illustrative examples.

The Zooline Company (Pty) Ltd is an American based company that focuses on the LSM 8 -10 markets. They do vehicle interiors, raise or lower suspensions and install top end sound sy

Calculate the range of monthly financing rates for which the schedule of monthly cash flows is profitable: Month Cash Flow, $ -------------------- 0 -10,100 1 +23,000 2 -13,


Explain the value attached to this common exercise undertaken by Accountants.

Ed Mettway was concerned about his firm''s ability to acquire the necessary property, plant, and equipment to take advantage of steadily increasing sales. Touring Enterprises, esta

Chrome-It, Inc., manufactures special chromed parts made to the order and specifications of the customer.  It has two production departments, stamping and plating, and two service