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

Assignment, What is the major value of the weighted cost of capital calcula...

What is the major value of the weighted cost of capital calculation for the firm?

Irrelevant cost., what is irrelevant cost and give example

what is irrelevant cost and give example

What was the market rate of interest, Q. Given the below, partial bond accr...

Q. Given the below, partial bond accretion table, what was the market rate of interest when the bond was issued?     Cash     Interest

Overhead costs, Overhead Costs Introduction Overhead costs may be...

Overhead Costs Introduction Overhead costs may be defined like the net cost of indirect materials, indirect expenses and indirect labour. They may happen or be charged to

Standard costing, What are the benefitss and drawbacks of standard costing?...

What are the benefitss and drawbacks of standard costing?

Please show you calculation and explain the answer, In early July, Mike Got...

In early July, Mike Gottfried purchased a $70 ticket to the December 15 game of the Chicago Titans. (The Titans belong to the Midwest Football League and play their games outdoors

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