Using the one-variance approach, what is the total overhead variance? NUBD Co. uses a standard cost system for its production process and appliesoverhead based on direct labor hours. The following information is available forAugust when NUBD made 4,500 units:Standard:2.50P1.75DLH per unitVariable overhead per DLHFixed overhead per DLHBudgeted variable overheadBudgeted fixed overheadP3.10P21,875P38,750Actual:Direct labor hoursVariable overhead10,000P26,250P38,000Fixed overhead

Name: Using the one-variance approach, what is the total overhead variance?
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Description: Using the one-variance approach, what is the total overhead variance? NUBD Co. uses a standard cost system for its production process and appliesoverhead based on direct labor hours. The following information is available forAugust when NUBD made 4,5

Solution: Actual overhead = P26,250 + P38,000 = P64,250 Overhead applied =SH * SR = (4500*2.50) *…

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ugust when NUBD made 4,500 units: Standard: DLH per unit Variable overhead per DLH Fixed overhead per DLH Budgeted variable overhead Budgeted fixed overhead 2.50 P1.75 P3.10 P21,875 P38,750 Actual: Direct labor hours 10,000 P26 250 Variable overbead

ugust when NUBD made 4,500 units: Standard: DLH per unit Variable overhead per DLH Fixed overhead per DLH Budgeted variable overhead Budgeted fixed overhead 2.50 P1.75 P3.10 P21,875 P38,750 Actual: Direct labor hours 10,000 P26 250 Variable overbead

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 11P: Overhead application rate Creole Manufacturing Inc. uses a job order cost system and standard costs....

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