Active TopicsActive Topics  Display List of Forum MembersMemberlist  Search The ForumSearch  HelpHelp
  RegisterRegister  LoginLogin
BEC STUDY GROUP
 CPAnet Forum : BEC STUDY GROUP
Subject Topic: Variances Analysis-Overhead (Topic Closed Topic Closed) Post ReplyPost New Topic
  
Author
Message << Prev Topic | Next Topic >>
catrinacpa
Newbie
Newbie


Joined: 07 Nov 2007
Location: United States
Online Status: Offline
Posts: 28
Posted: 02 Apr 2012 at 13:30 | IP Logged  

Can someone please assist me with this problem?

Actual:

Number of frames manuafactured: 19,000

Variable OH costs:$4,100

Fixed OH Cost: $22,000

Direct Labor Hours: 2100 hours

Budgeted:

Number of frams manuafactured: 20,000

Variable OH Costs: $2 per direct labor hour

Fixed OH Cost: $20,000. $1 per unit

Direct Labor Hours: 0.1 hour per frame

Question 1: What is the variable overhead efficiency variances?

Question 2: What is the production volume variances?

I am not understanding the problem. Please help



__________________
Trina
Back to Top View catrinacpa's Profile Search for other posts by catrinacpa
 
austingolduk
Newbie
Newbie


Joined: 21 Feb 2012
Location: United States
Online Status: Offline
Posts: 24
Posted: 02 Apr 2012 at 14:19 | IP Logged  

Hey, for question 1:
 use this formula for V/O Efficiency variance:
 {SH(boao) - AH} x SR}
 where :
  SH = standard hour  = 0.1
  boao = based on actual output = 19000
  AH = actual hour = 2100
  SR = standard variable rate. = $2
  using inserting the figures become:
 {0.1(19000) -2100} x $2 = 400(u). This is unfavorable variance because the organization used more hours than stipulated.

2. For production volume variance, the focus is on fixed cost.
the formula to use is:
{SH(boao) -BH} x SR
Where BH = budgeted hours = 20000 x.1 = 2000
          SR = standard fixed rate = $1

Inserting the formula:
 {0.1(19000) - 2000} x $1= 100(u)
This is unfavorable because the total standard hours is below the budgeted hours. Let me know is I got both questions right.
 
 
 
 


__________________
FAR-02/28/2012-PASSED
BEC-04/14/2012-PASSED
AUD-05/29/2012-PASSED
REG- 08/13/2012-?
Back to Top View austingolduk's Profile Search for other posts by austingolduk
 



Sorry, you can NOT post a reply.
This topic is closed.


  Post ReplyPost New Topic
Printable version Printable version

Forum Jump
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum

Powered by Web Wiz Forums version 7.9
Copyright ©2001-2010 Web Wiz Guide

This page was generated in 0.1094 seconds.

Copyright © 1996-2016 CPAnet/MizWeb Communities All Rights Reserved
Twitter
|Facebook |CPA Exam Club | About | Contact | Newsletter | Advertise & Promote