Totaloverheadthreevarianceanalysis 1 this problem

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Unformatted text preview: dfor Allowedfor ActualCosts Qty. ActualOutput ActualOutput Incurred ×BudgetedRate ×BudgetedRate ×BudgetedRate (1) (2) (3) (4) Variable $35,700 $31,500 $27,000 $27,000 MOH   $4,200 U $4,500 U  Rate variance Efficiency variance Never a variance   $8,700 U  Never a variance Flexible-budget variance  $8,700 U  Underallocated variable overhead  (Total variable overhead variance)  8 ­‑21(cont’d)    Fixed MOH    SameBudgeted  LumpSum  (asinStaticBudget)  Regardlessof ActualCosts OutputLevel Incurred (2) (1) $18,000 $15,000 FlexibleBudget: SameBudgeted LumpSum (asinStatic Budget) Regardlessof OutputLevel (3) $15,000  Allocated: BudgetedInput Qty. Allowedfor ActualOutput ×BudgetedRate (4) $14,400  $3,000 U $600 U  Rate variance Never a variance Production-volume variance   $600 U $3,000 U  Production-volume variance Flexible-budget variance  $3,600 U  Underallocated fixed overhead  (Total fixed overhead variance)  Anoverviewofthefouroverheadvariancesis:    Production ­‑ Four ­‑Variance Rate Efficiency Volume Analysis Variance Variance Variance VariableOverhead ...
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This document was uploaded on 02/04/2014.

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