What is the variable overhead spending variance

Assignment Help Managerial Accounting
Reference no: EM133028187

Question - H&B Inc. uses a standard cost system and calculates their application rates using direct labour hours.

This year the company had the following standards:

Standard direct labour hours per unit: 2 hours

Variable overhead application rate: $5 per direct labour hour

Fixed overhead application rate: $7 per direct labour hour

The company also had the following actuals:

Production: 17,000 units

Variable overhead: $195,840

Fixed overhead: $271,320

Total direct labour hours: 40,800

Required - What is the variable overhead spending variance?

a) $8,160 unfavourable

b) $25,840 unfavourable

c) $8,160 favourable

d) $25,840 favourable

Reference no: EM133028187

Questions Cloud

What rate of return would your uncle earn on his investment : Assume that you own an annuity that will pay you $15,000 per year for 12 years, If you sell it to your uncle, what rate of return would your uncle earn
Conflict resolution at cool brands shoppe : In Los Angeles, just outside of the city and near the beach, is the Cool Brands Shoppe that has some of the latest fashions for men and women.
What dollar amounts flexible budget would reflect monthly : The flexible budget would reflect monthly operating income for 16,000 bottles of lotion and 24,000 bottles of lotion of what dollar amounts
Indicators and symptoms of dementia : Desmond is a 70-year-old man with mild dementia who lives at home in his community. Desmond has a few supportive family members that help him to manage
What is the variable overhead spending variance : This year the company had the standards: Variable overhead application rate: $5 per direct labour hour. What is the variable overhead spending variance
Explain relation of rooms division manager : Explain in detail relation of rooms division manager front office manager executive housekeeper and how their management allows them to effectively become a hos
Labour shortage and wage theft issues : What Human Resource Management practices could use for the suggestion of "Labour shortage and Wage theft issues"?
What two accounting principles that abc sdn bhd not follow : However, the accountant accidentally record the expenses associated with the undeclared sales. What are two Accounting Principles that ABC Sdn Bhd not follow
Ways for an entrepreneur to go beyond convention : 3. What are some ways for an entrepreneur to go beyond convention to design a product to appeal to a particular market?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine a transfer price using the general rule

What transfer price would you recommend if there was no outside market for the transferred component and the assembly division had spare capacity?

  Should golden company accept the offer

If the outside supplier offers to sell glups for $65 each, should Golden Company accept the offer? Should the center be closed?

  What are the equivalent units produced

A department had $12,500 units which were 20% complete in beginning Goods in process inventory. What are the equivalent units produced

  What documents would review prior to paying an invoice

What documents would you review prior to paying an invoice received from a supplier? What internal controls would you implement to help maintain control

  Find what is total number of equivalent units for materials

Materials are added at the beginning of the process. What is the total number of equivalent units for materials if the FIFO method is used?

  Research the risks associated with capital budgeting

Research the risks associated with capital budgeting and identify the three that you believe are the most significant risks.Describe these risks

  What is ABC Enterprise profit under variable costing

ABC Enterprises had the following cost and production information for October: Units Produced 20,000. What is ABC Enterprise profit under variable costing

  Selected data for costs incurred for job

Garden equipment industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 787 are as follows

  What was the amount of direct labour? costs

What was the amount of direct labour? costs? Manufacturing overhead is allocated at? 60% of direct labour cost. Work in process? inventory, beginning

  Are any management changes that would recommend

SLC's board as to the steps to take remedy its situation Are there any management changes that you would recommend? Support your answer.

  Find which of the costs is best classified as fixed costs

Which of the costs is best classified as fixed costs with respect to volume? Depreciation of a copy machine in the Human Resource Department

  Calculate the net present value of the proposed equipment

Calculate the net present value of the proposed equipment purchase. Flounder uses a 11% discount rate. The Flounder Company is planning to purchase $ 468,000.

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!

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