Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided the following information for the month of February: Units produced Standard direct labor hours per unit Standard variable overhead rate (per direct labor hour) Actual variable overhead costs Actual hours worked Required: 1. Calculate the total variable overhead variance. 1,690 X Favorable 131,900 0.2 $3.40 $88,750 26,600 2. What if actual production had been 129,100 units? How would that affect the total variable overhead variance? Indicate what the new variance would be below Unfavorable $
Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided the following information for the month of February: Units produced Standard direct labor hours per unit Standard variable overhead rate (per direct labor hour) Actual variable overhead costs Actual hours worked Required: 1. Calculate the total variable overhead variance. 1,690 X Favorable 131,900 0.2 $3.40 $88,750 26,600 2. What if actual production had been 129,100 units? How would that affect the total variable overhead variance? Indicate what the new variance would be below Unfavorable $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Please help me
Transcribed Image Text:Calculating the Total Overhead Variance
Standish Company manufactures consumer products and provided the following information for the month of February:
Units produced
Standard direct labor hours per unit
Standard variable overhead rate (per direct labor hour)
Actual variable overhead costs
Actual hours worked
Required:
1. Calculate the total variable overhead variance.
1,690 X Favorable
✓
131,900
0.2
$3.40
$88,750
26,600
2. What if actual production had been 129,100 units? How would that affect the total variable overhead variance? Indicate what the new variance would be below.
Unfavorable
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education