COST ACCOUNTING
STANDARD COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Variable overhead variance 1, 560F; Fixed overhead variance 500UF
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Variable overhead variance 1, 560F; Fixed overhead variance 4, 700UF
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Variable overhead variance 600F; Fixed overhead variance 2, 100F
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Variable overhead variance 1, 650F; Fixed overhead variance 5000UF
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Detailed explanation-1: -Variable overhead cost variance = Recovered variable overheads-Actual variable overheads. Fixed overhead cost variance = Recovered fixed overheads-Actual fixed overheads.
Detailed explanation-2: -What Is Variable Overhead Efficiency Variance. Variable overhead efficiency variance refers to the difference between the true time it takes to manufacture a product and the time budgeted for it, as well as the impact of that difference. It arises from variance in productive efficiency.
Detailed explanation-3: -It is calculated as (budgeted production hours minus actual production hours) x (fixed overhead absorption rate divided by time unit), Fixed overhead efficiency variance is the difference between absorbed fixed production overheads attributable to the change in the manufacturing efficiency during a period.