1ACC2355Assignment 3 – Flexible Budgets and Overhead Variances (3%)This assignment relates to the following Course Learning Requirements:CLR 2 – Apply the concepts of relevant costing to generate operational recommendations to management.Objective of this Assignment:To apply course material in order to complete calculations related to flexiblebudgets and overhead variances.Instructions:For this assignment, you are required to answer questions related to 3 problems in order to demonstrate yourcomprehension of the chapter content and the ability apply this knowledge through calculations. You must useboth analytical practises and theory.Problem AFixed Overhead Spending and Volume Ariances, Columnar and Formula ApproachesA company provided the following information:•Standard fixed overhead rate (SFOR) per direct labour hour$7.00•Actual fixed overhead rate (AFOR) per direct labour hour$6.95•Actual direct labour hours worked (AH)36,100•Actual production in units12,000•Standard hours allowed for actual units produced (SH)36,000Problem A – Questions:1.Using the columnar approach, calculate the fixed overhead spending and efficiency variances.2.Using the formula approach, calculate the fixed overhead spending variance.
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- Winter '16
- Columnar and Formula Approaches, fixed overhead spending