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

Direct and indirect costs, Direct and Indirect costs Recall such direc...

Direct and Indirect costs Recall such direct costs are costs which can be traced particularly to the end product of the production procedure while indirect costs cannot be so

MANAGERIAL DECISION, DIFERENCE BETWEEN MARGINAL AND DIFFERENTIAL COSTING

DIFERENCE BETWEEN MARGINAL AND DIFFERENTIAL COSTING

Cash budget - budgetary planning and control, Cash Budget - Budgetary Plann...

Cash Budget - Budgetary Planning and Control This can records the cash outflows and inflows that are expected to take place in respect of every functional budget. This may be

Compute the internal rate of return, ABC bond is a 20-year bond with face v...

ABC bond is a 20-year bond with face value $1000. The coupon payment is $25 per 6 months. The semi-annual yield is 4%. Use the PV function in Excel (or equivalent) to Önd the price

Difference, difference between diffrential cost and marginal cost

difference between diffrential cost and marginal cost

Visual fit method of cost estimation, Visual Fit Method of Cost Estimation ...

Visual Fit Method of Cost Estimation Cost estimation is based on past data regarding the dependent variable and the cost driver. The previous data on cost levels and the outpu

Outstanding expenses, Expenses are usually recorded only while they are pai...

Expenses are usually recorded only while they are paid. The failure to record unpaid expenses in the accounts outcomes in an understatement of which expense and also an understatem

Measuring performance in organization, list and discus the problem encounte...

list and discus the problem encountered in adopting profit as a yardstick in measuring performance

Calculate remuneration of employee of an organisation, Calculate Remunerati...

Calculate Remuneration of Employee of an Organisation Based on the data underneath that you are necessary to calculate the remuneration of all employee like determined with ea

Approach in cost accounting, Approach in Cost Accounting Cost accounti...

Approach in Cost Accounting Cost accounting is based on the framework or concept of cost centers that is all the costs incurred throughout the production process contain to be

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages