Variable overhead expenditure variance, Cost Accounting

Assignment Help:

Variable Overhead Expenditure 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

Actual Variable Overheads

13,930

Actual Labour Hours

3,150/hours

Standard Hours of Production

3,280 hours

= Actual Variable Overheads - (Actual labour hours x V.O.A.R)                         

= Shs.13, 930 - (3,150 x 4)

= Shs.13, 930 - Shs.12,600

=   Shs.1, 330 Unfavourable

The variance is unfavourable since we spent more than allowed.


Related Discussions:- Variable overhead expenditure variance

Stages of implementation of zero based budgeting, Stages of Implementation ...

Stages of Implementation of Zero Based Budgeting 1. Definition of decision package. It is the comprehensive description of the organizations activities or functions.

Budgets, how can a poorly controlled budget cause problesm for a business?

how can a poorly controlled budget cause problesm for a business?

Example of flexible and fixed budget, Example of Flexible and Fixed Budget ...

Example of Flexible and Fixed Budget A company has budgeted to produce and sell 100,000 units of cakes throughout the next period. The selling price per cake is Sh. 20 and var

Occurrence of overhead variances, Occurrence of Overhead Variances Ove...

Occurrence of Overhead Variances Overhead variances arise mainly because of the conventions of the overheads absorption process. The overhead absorption rates employed in this

Calculate the total transportation cost, The sunshine tomato soup shippers ...

The sunshine tomato soup shippers produce tomato soup at three west coast canneries in Bakersfield, phoenix, and Eugene. The soup is shipped to four regional warehouses. Due to hig

Explain inaccurate financial statemnts, Generally Accepted Accounting Princ...

Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as they prepare and issue financial statemnents. Let's start by getting an understanding of

Process costing procedure, Process Costing Procedure 1. The production...

Process Costing Procedure 1. The production factory is divided into a number of methods. 2. An account is maintained and opened for every process. 3. Every process accou

Monetary performance and the financial position, The question required cons...

The question required consideration of both the monetary performance and the financial position, from the perception of a potential lender. As with previous questions, candidates w

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd