Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Illustration of Overhead Variance Analysis
Again for intentions of our demonstrations in overhead variance analysis, we will suppose the given basic data for company in the production of a radio cassette model Stereo F262 as:
Budget for December 2003;
Shs.
Fixed Overheads
11,480
Variable Overheads
13,120
Labour Hours
3,280 hours
Standard Hours of Production
Actual Results for December 2003
12,100
13,930
Actual Labour Hours
3,150/hours
Note
Based upon our budget above that the predetermined overhead absorption rates can be computed as given as:
F.O.A.R = Budgeted Fixed overhead/ Budgeted activity level
= Shs.11,480/3,280 std hours
= Shs.3.5/h
V.O.A.R = Budgeted Variable overhead/ Budgeted activity level
= Shs.13, 120/3,280 std hours
= Shs.4/h
Total OAR = F.O.A.R + V.O.A.R
= Shs.3.5/h+ Shs.4/h
= Shs.7.5/h
This is also notable from our budget such the budgeted standard hours and the budgeted labour hours of production are the similar: it is the normal planning basis that assumes as the actual labour hours will be the similar as the standard hours actually produced. It would imply such efficiency is as initially planned hence no efficiency variances would arise. Conversely, this is rarely the case in practice and thus the efficiency variances in overhead variances analysis.
Determine whether process is under control: Hall's refrigeration and heating company is concerned about complaints from their customers about some of their technicia
What are 'potential' ordinary shares? In your answer provide three examples to support your explanation. Briefly outline the process (steps) to determine whether 'potential' ordi
Multiple Products, Selling Costs, and Margin Management Selling charge are oftentimes variable. For instance, a salesperson can be paid a designated percentage of entire sales
how to post journal to ledger four coloumn
Distinction between Absorption and Marginal Costing These are two approaches of arriving at the cost of production or total profit for a specified period. The major difference
Good Food Company is a local manufacturer of instant noodles. Established in 2005, their business has been growing steadily. Their products, which are available in 3 flavors, are s
Process of Setting Standards in Standard Costing Establishing correct a standard is extremely important due to the accuracy of the standards usually finds out the success of t
Netflix Inc wants to issue discount bonds with a market value equal to 45% of their face value. The income tax rate of Netflix is 30%. The bonds will carry 3.5% coupon, paying inte
examples of industries using this method
Hello, I am writing a report about a contemporary management accounting issue, and i can''t really seem to understand the guidelines well. What kind of topic can i use to write a
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd