Fixed overhead budget variance - Fixed overhead budget variance is the variance which measures the difference between actual fixed overhead incurred and the budgeted fixed overhead. If budgeted fixed overhead is more than the actual fixed overhead incurred then the variance is favorable and if budgeted fixed overhead is less than the actual fixed overhead incurred then the variance is unfavorable. It is calculated as follows- F i x e d o v e r h e a d b u d g e t v a r i a n c e = B u d g e t e d f i x e d o v e r h e a d – A c t u a l f i x e d o v e r h e a d Fixed overhead volume variance- Fixed overhead volume variance is the variance which measures the difference between the budgeted fixed overhead and the actual fixed overhead in terms of predetermined fixed overhead rate. If actual fixed overhead calculated is more than the budgeted fixed overhead then the variance is favorable and if actual fixed overhead calculated is less than the budgeted fixed overhead then the variance is unfavorable. To compute: Fixed overhead budget variance and fixed overhead volume variance

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Answer 1

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Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 15, Problem 15.6ME

To determine

Concept Introduction:

Fixed overhead budget variance-

Fixed overhead budget variance is the variance which measures the difference between actual fixed overhead incurred and the budgeted fixed overhead. If budgeted fixed overhead is more than the actual fixed overhead incurred then the variance is favorable and if budgeted fixed overhead is less than the actual fixed overhead incurred then the variance is unfavorable. It is calculated as follows-

Fixed overhead budget variance = Budgeted fixed overhead – Actual fixed overhead

Fixed overhead volume variance-

Fixed overhead volume variance is the variance which measures the difference between the budgeted fixed overhead and the actual fixed overhead in terms of predetermined fixed overhead rate. If actual fixed overhead calculated is more than the budgeted fixed overhead then the variance is favorable and if actual fixed overhead calculated is less than the budgeted fixed overhead then the variance is unfavorable.

To compute:

Fixed overhead budget variance and fixed overhead volume variance

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Answer 2

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 15, Problem 15.6ME

To determine

Concept Introduction:

Fixed overhead budget variance-

Fixed overhead budget variance is the variance which measures the difference between actual fixed overhead incurred and the budgeted fixed overhead. If budgeted fixed overhead is more than the actual fixed overhead incurred then the variance is favorable and if budgeted fixed overhead is less than the actual fixed overhead incurred then the variance is unfavorable. It is calculated as follows-

Fixed overhead budget variance = Budgeted fixed overhead – Actual fixed overhead

Fixed overhead volume variance-

Fixed overhead volume variance is the variance which measures the difference between the budgeted fixed overhead and the actual fixed overhead in terms of predetermined fixed overhead rate. If actual fixed overhead calculated is more than the budgeted fixed overhead then the variance is favorable and if actual fixed overhead calculated is less than the budgeted fixed overhead then the variance is unfavorable.

To compute:

Fixed overhead budget variance and fixed overhead volume variance

Expert Solution & Answer

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Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 15, Problem 15.6ME

To determine

Concept Introduction:

Fixed overhead budget variance-

Fixed overhead budget variance is the variance which measures the difference between actual fixed overhead incurred and the budgeted fixed overhead. If budgeted fixed overhead is more than the actual fixed overhead incurred then the variance is favorable and if budgeted fixed overhead is less than the actual fixed overhead incurred then the variance is unfavorable. It is calculated as follows-

Fixed overhead budget variance = Budgeted fixed overhead – Actual fixed overhead

Fixed overhead volume variance-

Fixed overhead volume variance is the variance which measures the difference between the budgeted fixed overhead and the actual fixed overhead in terms of predetermined fixed overhead rate. If actual fixed overhead calculated is more than the budgeted fixed overhead then the variance is favorable and if actual fixed overhead calculated is less than the budgeted fixed overhead then the variance is unfavorable.

To compute:

Fixed overhead budget variance and fixed overhead volume variance

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 15, Problem 15.6ME

To determine