Q3. A company follows the system of standard costing. The records of the company reveal the following information for the month of May: |Budgeted Actual Number of man-hours Number of working days 8000 8600 20 22 Overhead rate per hour { 1.00 Hours per unit of output 20 Fixed Overheads incurred 7,200 Number of units produced 450 units For the month of May, calculate the following variances for fixed overheads: (0) (i) Overhead Cost variance Overhead Volume variance Overhead Efficiency variance (iv) Overhead Capacity variance (v) Overhead Budget variance (vi) Calendar variance

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Q3. A company follows the system of standard costing. The records of the
company reveal the following information for the month of May:
Budgeted
Actual
Number of man-hours
Number of working days
8000
8600
20
22
Overhead rate per hour
{ 1.00
Hours per unit of output
20
Fixed Overheads incurred
{7,200
Number of units produced
450 units
For the month of May, calculate the following variances for fixed overheads:
(1)
(ii)
Overhead Cost variance
Overhead Volume variance
(iv)
(v)
(vi)
Overhead Efficiency variance
Overhead Capacity variance
Overhead Budget variance
Calendar variance
Transcribed Image Text:Q3. A company follows the system of standard costing. The records of the company reveal the following information for the month of May: Budgeted Actual Number of man-hours Number of working days 8000 8600 20 22 Overhead rate per hour { 1.00 Hours per unit of output 20 Fixed Overheads incurred {7,200 Number of units produced 450 units For the month of May, calculate the following variances for fixed overheads: (1) (ii) Overhead Cost variance Overhead Volume variance (iv) (v) (vi) Overhead Efficiency variance Overhead Capacity variance Overhead Budget variance Calendar variance
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