Solution-Compute the variable overhead spending variance

Compute the variable overhead spending variance

Assignment Help Managerial Accounting

Reference no: EM132780741

Question - Orville Company's standard and actual costs per unit are provided below for the most recent period. During this time period 640 units were actually produced.

Standard Actual

Materials: Standard: 2.4 metres at $2.5 per m. $6.00

Actual: 2.1 metres at $2.60 per m. $5.46

Direct labour:

Standard: 1.5 hrs. at $8.30 per hr. 12.45

Actual: 1.7 hrs. at $8.50 per hr. 14.45

Variable overhead:

Standard: 1.5 hrs. at $4.60 per hr. 6.90

Actual: 1.7 hrs. at $4.20 per hr. 7.14

Total unit cost $25.35 $27.05

For simplicity, assume there was no inventory of materials at the beginning or end of the period.

Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable.

1. Materials price variance

2. Materials quantity variance

3. Direct labour rate variance

4. Direct labour efficiency variance

5. Variable overhead efficiency variance

6. Variable overhead spending variance

Reference no: EM132780741

Questions Cloud

Key limitations of relying on the ftc : What are some of the key limitations of relying on the FTC as the main federal regulator of consumer privacy issues?

Which viewpoint is correct and why : The president says that it doesn't matter which way Mr. Brown's salary cost is classified. Which viewpoint is correct? Why

Find holding period return and annualized return : 1. You purchased 100 shares of IBM common stock on margin at $65 per share. Assume the initial margin is 50% and the maintenance margin is 25%.

Describe what privacy and data breach mean : Briefly describe what Privacy and data breach means and what measures do we have in place to stop these breaches occurring?

Compute the variable overhead spending variance : For simplicity, assume there was no inventory of materials at the beginning or end of the period. Compute the variable overhead spending variance

Distinguish between the two debt markets : Blackmores needs to borrow money for the purpose of purchasing a long -term asset. Given the fact that the cost of borrowing is usually cheaper

Explain challenges associated with big data analytics : The recent advances in information and communication technology (ICT) has promoted the evolution of conventional computer-aided manufacturing industry to smart.

Calculate the depletion of the timber tract : Calculate the 2021 depletion of the timber tract and depreciation of the logging roads assuming the units-of- goduction method is used for both assets

What kind of speech was the first amendment : What kind of speech was the First Amendment written to protect? Does the First Amendment apply only to spoken words?

User Account

All Pages

Compute the variable overhead spending variance

Reference no: EM132780741

Reference no: EM132780741

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

What would be the effect on york overall operating income

Which of the statement is true for carter company

Determine the observed time

Compute annual rate of return on propose capital expenditure

A physical inventory of office necessities taken

How do calculate after-tax cash flows during life of project

What amounts of advertising and sales salaries

What is estimated unit product cost for the fourth quarter

What the profitability index for the investment is

What a limitation of the internal rate of return method is

Firm strategy and financial analysis - ikea

How do discuss any four performance measurement systems

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT