Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Standard Quantity Standard Rate Standard Unit Cost Var. Man. OH 0.6 $0.80 $0.48 During August, LLL had the following actual results Units produced and sold-25,300 Actual Variable Overhead-$9,520 Actual Direct Labor Hours-16,300 Variable Overhead Rate Variance? AH X (SR-AR) I keep getting wrong Variable Overhead Effeciency Variance? SR X (SH-AH)m I keep gettimg wrong Variable Overhead Spending Variance? Im not sure the formula for this
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.
Lamp Light Limited (LLL) manufactures lampshades. It applies variable
Standard Quantity Standard Rate
Var. Man. OH 0.6 $0.80 $0.48
During August, LLL had the following actual results
Units produced and sold-25,300
Actual Variable Overhead-$9,520
Actual Direct Labor Hours-16,300
Variable Overhead Rate Variance? AH X (SR-
Variable Overhead Effeciency Variance? SR X (SH-AH)m I keep gettimg wrong
Variable Overhead Spending Variance? Im not sure the formula for this
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