Cost Accounting 13 edition
CHAPTER 8
Activity Based Costing & Management
21, 22,
25, 29,
33, and 40
Not on My Accounting Lab
8-21
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
$4,200 U
4,500 U
NEVER
8,700 U
8,700 U
$3,000 U
NEVER
600 U
3,000 U
3,600 U
These relationships could be presented in the same way as in Exhibit 8-4.
Actual Costs
Incurred
(1)
Actual Input Qty.
× Budgeted Rate
(2)
Flexible Budget:
Budgeted Input
Qty.
Allowed for
Actual Output
× Budgeted Rate
(3)
Allocated:
Budgeted Input Qty.
Allowed for
Actual Output
× Budgeted Rate
(4)
Variable
MOH
$35,700
$31,500
$27,000
$27,000
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 Qty.
Allowed for
Actual Output
× Budgeted Rate
(4)
Fixed
MOH
$18,000
$15,000
$15,000
$14,400
$4,200 U
Spending variance
$4,500 U
Efficiency variance
Never a variance
$3,000 U
Spending variance
Never a variance
$600 U
Production-volume variance
$8,700 U
Flexible-budget variance
Never a variance
$8,700 U
Underallocated variable overhead
(Total variable overhead variance)
$3,000 U
Flexible-budget variance
$600 U
Production-volume variance