The overhead cost variances , Cost Accounting

Assignment Help:

The following facts have been extracted from the standard cost card for product X: 
   
                                                                                                       Rs./unit    
      Variable overhead
          4 machine hours @ Rs.8.00/hour                                               32.00
        2 labour hours @ Rs. 4.00/ hour                                                  8.00
        Fixed overhead                                                                         20.00
 During  October  20X7,  5,450  units  of  the  product  were  made  compared  with  a  budgeted production target of 5,500 units. The actual overhead costs incurred were: 
                
                                                                                                              Rs.

        Machine-related variable overhead                                                 176,000
        Labour-related variable overhead                                                   42,000
        Fixed overhead                                                                           109,000
 
The original number of machine hours was 22,000 and the real number of labour hours was
10,800. 
 
 Requirements: 
(a)    Measure  the  overhead  cost  variances  in  as much  detail  as  possible  from  the  data given
(b)    Describe  the meaning  of,  and  discuss  the  variable  overhead  variances  that  you have calculated.  .  


Related Discussions:- The overhead cost variances

Manufacturing Overhead, Does Manufacturing Overhead include the following:1...

Does Manufacturing Overhead include the following:1)Material Handling - labour for Purchasing Material, Shipping (inbound for raw materials and outbound for finished product - also

Regression analysis method of cost estimation, Regression Analysis Method o...

Regression Analysis Method of Cost Estimation It includes estimating the cost function by utilizing past data or the dependent and the independent variables. Hence the cost fu

Determine the acquisition cost, Waterloo Machining, Inc. paid $1,800,000 fo...

Waterloo Machining, Inc. paid $1,800,000 for factory equipment on January 1, 2012. It paid $100,000 for delivery and $220,000 for installation and modifications.  Waterloo received

Prepare a forecast of cashflow, A company is to produce an IC and a chip si...

A company is to produce an IC and a chip size of 120mm2 has been estimated, based on using a full-custom nMOS technology on 8" wafers. The process has a 92% yield at the wafer fab

Estimate total money using marginal and average tax rate, Thomas Crown expe...

Thomas Crown expects to earn the following stream of annual income for the next four years:- $41,000; $45,000; $38,000 and $50,000. Although he has adopted the Pay Yourself First s

Determine the relevant costs for this order, Make-or buy and relevant costs...

Make-or buy and relevant costs - The assembly division of Davenport, Inc., is bidding on an order of 50,000 smart phones. The division is eager to get this order because it has a s

Traditional Overhead Allocation and Activity Based Costing, The controller ...

The controller for U.S. Route 66 Truck Parts is comparing traditional overhead allocationwith ABC. After studying both approaches, the controller prepared the following list of fea

Find an article just-in-time inventory systems, Find a journal article onl...

Find a journal article online about just-in-time inventory systems. In the subject line of your post, include the title of the article that you read. Post a link to that article wi

Cost accounting, cost accounting as a descriptive/analytical discipline

cost accounting as a descriptive/analytical discipline

Write Your Message!

Captcha
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