ch 8 Homework - 8-21 1 2 3 4 5(1015 min 4-variance analysis...

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8-21 (10 15 min.) 4-variance analysis, fill in the blanks. Variable Fixed 1. Spending variance 2. Efficiency variance 3. Production-volume variance 4. Flexible-budget variance 5. Underallocated (overallocated) MOH $200 U 2,200 F NEVER 2,000 F 2,000 F $4,600 U NEVER 1,200 F 4,600 U 3,400 U These relationships could be presented in the same way as in Exhibit 8-4. Actual Costs Incurred (1) Actual Input Quantity × Budgeted Rate (2) Flexible Budget: Budgeted Input Quantity Allowed for Actual Output × Budgeted Rate (3) Allocated: Budgeted Input Quantity Allowed for Actual Output × Budgeted Rate (4) Variable MOH $31,000 $30,800 $33,000 $33,000 Actual Costs Incurred (1) Same Budgeted Lump Sum (as in Static Budget) Regardless of Output Level (2) Flexible Budget: Same Budgeted Lump Sum (as in Static Budget) Regardless of Output Level (3) Allocated: Budgeted Input Quantity Allowed for Actual Output × Budgeted Rate (4) Fixed MOH $18,000 $13,400 $13,400 $14,600 $200 U Spending variance $2,200 F Efficiency variance Never a variance $4,600 U Spending variance Never a variance $1,200 F Production-volume variance $2,000 F Flexible-budget variance Never a variance $2,000 F Overallocated variable overhead (Total variable overhead variance) $4,600 U Flexible-budget variance $1,200 F Production-volume variance $3,400 U Underallocated fixed overhead (Total fixed overhead variance)
An overview of the 4 overhead variances is: 4-Variance Analysis Spending Variance Efficiency Variance Production-Volume Variance

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