Evaluate the fixed overhead volume variance

Assignment Help Financial Management
Reference no: EM13343713

Nova Manufacturing applies factory overhead to products on the basis of direct labor hours. At the beginning of the current year, the company's accountant made the following estimates for the forthcoming period:

  • Estimated variable overhead: $500,000
  • Estimated fixed overhead: $400,000
  • Estimated direct labor hours: 40,000

It is now 12 months later. Actual total overhead incurred in the manufacture of 7,900 units amounted to $895,100. Actual labor hours totaled 39,800. Assuming a direct labor standard of five hours per finished unit, calculate the

a. Variable overhead efficiency variance

b. Fixed overhead volume variance

c. Overhead spending variance

Reference no: EM13343713

Questions Cloud

Find arrows variances for factory overhead : Evaluate Arrow's direct material variances, compute Arrow's direct labor variances and find Arrows variances for factory overhead.
What could be the frequency of the tuning fork : A 0.0100 kg wire, 2.00 m long, is fixed at both ends and vibrates in its simplest mode under a tension of 185 N. What could be the frequency of the tuning fork
Explain the benefit of using flexible budgets : Prepare a flexible budget for 20,000, 22,500, and 25,000 units of activity and was Centron's experience in the quarter cited better or worse than anticipated? Prepare an appropriate performance report and explain your answer.
What was the magnitude of the dryers angular acceleration : A clothes dryer is spinning at 75 rpm. A student opens its door and it comes to rest after rotating through four revolutions. What was the magnitude of the dryer's angular acceleration
Evaluate the fixed overhead volume variance : calculate the Variable overhead efficiency variance and fixed overhead volume variance and overhead spending variance
Find the final kinetic energy of first glider : A 0.350kg glider is moving to the right on a frictionless, ­horizontal air track with a speed of 0.850m/s when it makes a head-on collision with a stationary 0.150kg glider. Find the Final Kinetic Energy of first glider
What is the temperature inside the container : The number density in a container of argon gas is 2.37·1025 m?3. The atoms are moving with an rms of 427 m/s. What is the temperature inside the container
Are the attitudes in countriesindividualistic or colletive : Are the attitudes in the countriesindividualistic or collective?
What was apples quick ratio : In July 2007, Apple had cash of $7.12 billion, current assets of $18.75 billion, current liabilities of $6.99 billion, and inventories of $0.25 billion.

Reviews

Write a Review

Financial Management Questions & Answers

  Evaluate the performance of a company

Evaluate the performance of a company using various financial analytical tools and analyse different patterns of cost behaviour and apply cost-volume-profit analysis to business decisions.

  Should a multinational firm risk overhedging

Discuss the topic-Should a multinational firm risk overhedging - creditors may prefer that the multinational firms maintain low exposure to exchange rate risk. Consequently, multinational firms that hedge their exposure to risk may be able to borro..

  Explain working capital requirements are estimated to remain

The old machinery was purchased for $1 million 3 yrs ago, and is being depreciated on a straight-line basis over its 5 year life. Its economic life as of today, however, is estimated to be 5 years. It can be sold for $300,000 today.

  Discuss the operation of monetary policy in the us

Define monetary policy, and discuss the operation of monetary policy in the United States post-GFC.

  Should fuelsource recognize a provision

Should FuelSource recognize a provision as of December 31, 20X1, (1) in reporting to itsU.K. parent under IFRSs and (2) in reporting to its U.S.-based lender in accordance withU.S. GAAP?

  What is the present value of the bond show your work

You buy a government bond that pays interset twice a year. The interset payment is $300 each six months. The bond matures in six years. The face value of the bond is $10,000. The annual market interset rate is 6 percent.

  Budgets in managerial accounting

Using the information, prepare a budget for May. Consider that production wil increase to 30,000 jars of salsa, reflecting an anticipated sales increase related to a new marketing campaign.

  Calculate the average return per period for an investor

Calculate the average return per period for an investor who bought 100 shares of the Closed Fund at the initiation and then sold her position at the end of Period 4.

  State main difference in opinion of the house and the senate

Listen or review the slides on Health Insurance Exchanges. In general, what is the main difference in opinion of the House and the Senate? Whose viewpoint do you agree with? How do these viewpoints impact financial challenges facing health care le..

  What was the firms 2011 operating cash flow or ocf

Suppose you also know that the firm's net capital spending for 2011 was $1,340,000, and that the firm reduced its net working capital investment by $63,000.

  Explain the primary challenges for the firms

In your opinion, what are the primary challenges for each of these firms with respect to their employees, customers, suppliers, and shareholders? Be specific.

  Explain what economic factors are driving the market

What has happened over each week that was consistent with what you have learned about security investments in this course? Did the stock price react quickly to news? Prepare a 10-15 slide presentation excluding the title slide and reference slides..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd