• Estimated variable overhead: $500,000 • Estimated fixed overhead: $400,000 • Estimated direct labor hours: 40,000 It is now 12 months later. Actual total overhead incurred in the manufacture of 7,900 units amounted to $895,100. Actual labor hours totaled 39,800. Assuming a direct labor standard of five hours per finished unit, calculate the following: a.
Variable overhead efficiency variance
Fixed overhead volume variance
Overhead spending variance
Chapter 7 Problem 1 1. P26-A1 Basic flexible budgeting (L.O. 2) Centron, Inc., has the following budgeted production costs: Chapter 7 Problem 5 5. P26-B3 Straightforward variance analysis (L.O. 5) Arrow Enterprises uses a standard costing system. The standard cost sheet for product no. 549 follows.
ACC 206 Week 4 DQ 1 Issues in Standard Costs and Budgeting Issues in Standard Costs and Budgeting Review the Standard costs: wake up and smell the coffee.article. When evaluating performance, many organizations compare current results with the actual results of previous accounting periods. Is an organization that follows this approach likely to encounter any problems? Explain. ACC 206 Week 4 DQ 2 Flexible budgets Flexible budgets provide different information than static budgets. Discuss some of these differences. Is a flexible budget always better? Are there times when you’d recommend using a static budget over a flexible budget? ACC 206 Week 4 Exercise Solution