# 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