Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. overhead variances, four-variance analysis oerstma

Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead...

80.2K

Verified Solution

Question

Accounting

image
Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 129,000 units requiring 516,000 direct labor hours. (Practical capacity is 536,000 hours.) Annual budgeted overhead costs total $851,400, of which $608,880 is fixed overhead. A total of 119,300 units using 514,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $260,400, and actual fixed overhead costs were $556,150, Required: 1. Compute the fixed overhead spending and volume variances. Fixed Overhead Spending Variance 52,730 Favorable Unfavorable Fixed Overhead Volume Variance -7,552 X 2. Compute the variable overhead spending and efficiency variances. Do not round intermediate calculations Unfavorable Variable Overhead Spending Variance 43,500 X Unfavorable Variable Overhead Efficiency Variance -18,620 X

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

a) Explain the major causes of kick as related to the well control. b) There are two...

Civil Engineering
Q

Describe four ways in which adult thinking differs from adolescent thinking. Don't make this up -...

Psychology
Q

Prove that the real numbers do not have cardinality N0 using Cantor’s diagonalization argument.

Advance Math
Q

Converting a prairie to a farm field is example of exotic species climate change habitat...

Biology
Q

The length of a wire of a potentiometer is 100 cm and the emf of...

Physics
Q

e table shows the worldwide box office in billions of dollars for the movie industry...

Basic Math
Q

The amount of time it takes Hugo to solve a Rubik's cube is continuous and...

Statistics
Q

Minimize P subject to the given constraints P 8y x constraints x 0 y 0...

Algebra
Q

ferris company has an old machine that is fully depreciated but has a current salvage...

Accounting
Q

The unadjusted trial balance of WonderWonder Anvils at DecemberDecember 3131, 20182018, and the data for...

Accounting
Q

Anderson acquires 10 percent of the outstanding voting shares of Barringer on January 1,2013, for...

Accounting
Q

Boris Company introduced JIT manufacturing last year and has prepared the following data to assess...

Accounting