Ex6-Russo Corporation manufactured 21,000 air conditioners during November. Theoverhead cost-allocation base is $34.25 per machine-hour. The following variable overheaddata pertain to November:Actual Budgeted Production 21,000 units 24,000 units Machine-hours 13,300 hours 14,400hours Variable overhead cost per machine-hour: $34.00 $34.25 What is the variableoverhead spending variance?ProductionMachine-hoursVariable overhead cost per machine-hourActual21,000 units13,300 hours$34.001. Determine the variable overhead spending variance2. Indicate if the variance unfavourable or favourable3. Comment in the results is requirementBudgets24,000 units14,400 hours$34.25

Name: Ex6-Russo Corporation manufactured 21,000 air conditioners during Nov
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Description: Ex6-Russo Corporation manufactured 21,000 air conditioners during November. Theoverhead cost-allocation base is $34.25 per machine-hour. The following variable overheaddata pertain to November:Actual Budgeted Production 21,000 units 24,000 units Mac

Variable Overhead Budget or Spending (Expenditure) Variance = Standard Overhead - Actual…

Answered: Production Machine-hours Variable…

Business

Accounting

Production Machine-hours Variable overhead cost per machine-hour Actual 21,000 units 13,300 hours $34.00 Budgets 24,000 units 14,400 hours $34.25

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Requirements 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. Explain why the variances are favorable or unfavorable. 2. Requirement 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, foxed overhead cost variance, and foxed overhead volume variance. Begin by selecting the formulas needed to compute the variable overhead (VOH) and fioxed overhead (FOH) variances, and then compute each variance amount. Actual overhead - (Actual hours x Standard price) (Actual hours - Standard hours allowed) x Standard price Actual overhead - Budgeted overhead Budgeted overhead - Allocated overhead = VOH cost variance %3D Data Table = VOH efficiency variance %3D |= FOH cost variance = FOH volume variance