User Account

All Pages

What is the efficiency variance for variable overhead

Assignment Help Managerial Accounting
Reference no: EM132846149

Question - Orion Inc. uses a standard costing system. Overhead costs are applied based on direct labour hours. Budgeted data for January are as follows:

Static Budget

Units Produced 126,000

Direct Labour Hours 56,700

Total Budgeted Manufacturing Overhead Costs $130,410

Predetermined Fixed Manufacturing Overhead Rate $2.00 per DLH

Actual data for January are as follows:

Actual

Units Produced 115,000

Direct Labour Hours 55,000

Variable Overhead Costs $15,250

Fixed Overhead Costs $115,200

Required -

1. What is the rate variance for variable overhead.

2. What is the efficiency variance for variable overhead?

3. What is the Rate variance for fixed overhead?

4. What is the Production volume variance for fixed overhead?

5. Using your answers to questions 3 and 4 above:

a. explain the rate and production volume variances (descriptive analytics).

b. explain why these variances may have occurred (diagnostic analytics).

Reference no: EM132846149

Questions Cloud

What are some key differences between disorders : Personality disorders, What are some key differences between disorders that can assist a counselor in making an accurate diagnosis?
What are current or future organizational issues at ibm : What are current or future organizational issues at IBM and Perform a competitive analysis identifying a minimum of three competitors and comparing
Calculate the equivalent annual cost for each method : The aboveground equipment has an effective operating life of nine years. Calculate the equivalent annual cost for each method
Why do think dichotomy exists : Given your understanding of gender roles in society, why do you think this dichotomy exists? Borderline personality disorder is often viewed as a diagnosis.
What is the efficiency variance for variable overhead : Orion Inc. uses a standard costing system. Overhead costs are applied based on direct labour hours. What is the efficiency variance for variable overhead
Explain a life span development event : Explain a life span development event, or issue (i.e., child rearing practices, marital considerations, elder care, dementia, reproductive technologies)
How the current economy has impacted the issues : Explain various breakdowns in the system between victims and law enforcement. Identify how the current economy has impacted these issues.
Examine supreme court decisions noted in the crime victims : Examine and evaluate the Supreme Court decisions noted in the Crime Victims text. Choose one case which you interpreted to be especially important.
What is the value of the company : After the 3rd year, earnings growth is expected to slow to 4 % per year and continue at that level forever. What is the value of the company in year 3

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Prepare a table that shows the total cost of fuel

Prepare a table that shows the total cost of fuel and unit cost for miles traveled ranging from 0 to 10,000 miles, using increments of 2,000 miles.

  What are three important reasons to reconcile bank

What are 3 important reasons to reconcile bank and credit card accounts at set dates? To verify that an account balance is within its credit limit.

  What is the company net income using the Variable Costing

Variable selling and administrative costs $22 per bike and Selling price $200 per bike. What is the company's net income using the Variable Costing method

  How process costing system differ from a job costing system

Silva Piping Company produces PVC piping in two processing departments,How does the process costing system used here differ from a job costing system?

  Find the cost of goods manufactured the period equals

Find The Cost of Goods Manufactured the period equals, Miami Corp. obtained the information from its accounting records Sales.

  What must the six-month risk-free rate be in Australia

Suppose interest rate parity holds, and the current risk-free rate in the United States is 5 percent per six months. What must the six-month risk-free rate

  For each of the preceding cost pools

For each of the preceding cost pools, identify a possible cost driver.

  What are the five ways that management can seek to relax

Barber Manufacturing, What are the five ways that management can seek to relax a constraint by expanding the capacity of a bottleneck operation.

  What were sunsets cash flows from operating activities

What were Sunset's cash flows from operating activities?

  Compute total job cost for the gargus account

Determine and Compute the firm's predetermined overhead rate. Compute total job cost for the Gargus account and the Feller account.

  Determine what would legitimate reason for upper management

Determine What would be a legitimate reason for upper management to insist on an internal transfer even though the product could be sourced outside

  Determine what is the net present value of the machine

What is the net present value of the machine? Butler Corporation is considering the purchase of new equipment costing $87,000

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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