Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. overhead variances, four-variance analysis oerstma

Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead...

70.2K

Verified Solution

Question

Accounting

Overhead Variances, Four-Variance Analysis

Oerstman, Inc., uses a standard costing system and develops its overhead rates from the current annual budget. The budget is based on an expected annual output of 126,000 units requiring 504,000 direct labor hours. (Practical capacity is 524,000 hours.) Annual budgeted overhead costs total $821,520, of which $594,720 is fixed overhead. A total of 119,300 units using 502,000 direct labor hours were produced during the year. Actual variable overhead costs for the year were $260,300, and actual fixed overhead costs were $555,850.

Required:

1. Compute the fixed overhead spending and volume variances.

Fixed Overhead Spending Variance $ Favorable
Fixed Overhead Volume Variance $ Unfavorable

2. Compute the variable overhead spending and efficiency variances. Do not round intermediate calculations

Variable Overhead Spending Variance $ Unfavorable
Variable Overhead Efficiency Variance $ Unfavorable

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Sally is a 68-year-old woman who walks 3 times per week, and attends yoga class
2 times...

Medical Sciences
1.2K views

1. Gas Exchange and Transport (A) Discuss the factors affecting gas exchange in the lungs (B) Discuss...

Accounting
1.2K views

12. EX.17-12.ALGO Cost of Units Completed and in Process The charges to Work in Process—Assembly Department for...

Physics
1.2K views

The displacement of the medium in a sound wave is given by the equation y...

Physics
1.2K views

Fill in the blanks for Sonometer 1 In sonometer if tension of wire and length...

Basic Math
1.2K views

Deandre is playing a carnival game He is blindfolded while he throws a dart at...

Basic Math
1.2K views

The area of the region that lies to the right of the y-axis and to...

Accounting
1.2K views

Page 3 Question 2(15 MARKS) A. Stewart Corp. disclosed...

Accounting
1.2K views

Garrett Boone, Ayayai Enterprises vice president of operations, needs to replace an automatic lathe on...

Accounting
1.2K views

For each situation provided, please indicate what general internal control approach is being used:Only cashiers...

Accounting
1.2K views

Koontz Company manufactures a number of products. The standards relating to one of these products...

Accounting
1.2K views

Problem 2 Lorraine manufactures a single product with the following full unit costs...