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.
Currently the stock of Backstreet Toys (BT) is selling for $20 per share and the risk free rate is5%. a) Draw a payoff diagram for each of the following 3 portfolios: i. Buy
The Butchering Department of the Santa Fe Meat Packing Corporation (a process costing corporation, FIFO costing) had 1,500 units, 1/3 completed at the beginning of the period and 1
The level of activity at which total revenues eqivalent total costs. A point at which there is no profit and no loss.
Calculate the rate of learning at which the initial production phase profit target would be achieved, assuming no other cost savings can be made. Assuming no other cost savi
Features of Effective Cost Center Framework During the establishing cost centers, an organization must consider the given points as: a) Clear definition about the cost cent
using relevant examples discuss the meaning and scope of cost accounting
Master Designs Company has cash flows for operating activities of $350,000. Cash flows used for investments in property, plant, and equipment totaled $65,000, of which 70% of this
Sam Edwards has been the accounting manager for Jade Manufacturing in a highly competitive international market for ten years. Jade Manufacturing produces heavy equipment for two m
discuss the problems of installing a costing system
What is buffer stock
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