Adjustmentofcogs variablemohefficiencyvariance 3840

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Unformatted text preview: y variance Production-volume variance   $14,960 U $5,600 F*  Flexible-budget variance Production-volume variance Knownfigure  Anoverviewofthethree ­‑varianceanalysisusingtheblockformatinthetextis:  Three ­‑Variance Rate Efficiency Production−  Analysis Variance Variance VolumeVariance $14,000U $960U $5,600F TotalOverhead  2. The control of variable manufacturing overhead requires the identification of the cost drivers for such items as energy, supplies, equipment, and maintenance. Control often entails monitoring nonfinancial measures that affecteachcostitem,onebyone.Examplesarekilowattsused,quantitiesof lubricantsused,andequipmentpartsandhoursused.Themostconvincing waytodiscoverwhyoverheadperformancedidnotagreewithabudgetis toinvestigatepossiblecauses,lineitembylineitem.    Individual fixed manufacturing overhead items are not usually...
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