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Alden Company uses a three - variance analysis for factory overhead variances. Practical capacity is defined as 3 4 setups and 3 4 , 0
Alden Company uses a threevariance analysis for factory overhead variances. Practical capacity is defined as setups and
machine hours to manufacture units for the year. Selected data for follow:
Required:
Compute a the total overhead spending variance, b the overhead efficiency variance, and c the total overhead flexible budget
variance for Label each variance as favorable F or unfavorable U
Assume that the company includes all setup costs as variable factory overhead. The budgeted total fixed overhead, therefore, is
$ and the standard variable overhead rate per setup is $ What are a the total overhead spending variance, b the
overhead efficiency variance, and c the total overhead flexible budget variance for the year? Label each variance as favorable F or
unfavorable U
Assume that the company uses only machine hours as the activity measure to apply both variable and fixed overhead, and that it
includes all setup costs as variable factory overhead. What are a the Total Overhead Spending Variance, b the Overhead Efficiency
Variance, and c the total Overhead Flexible Budget Variance for the year? Indicate whether each variance is favorable F or
unfavorable U Compute a the total overhead spending variance, b the overhead efficiency variance, and c the total overhead flexible
budget variance for Label each variance as favorable F or unfavorable U Required
Required
Required
Assume that the company includes all setup costs as variable factory overhead. The budgeted total fixed overhead, therefore,
is $ and the standard variable overhead rate per setup is $ What are a the total overhead spending variance,
b the overhead efficiency variance, and c the total overhead flexible budget variance for the year? Label each variance as
favorable or unfavorable U
c Flexiblebudget variance Assume that the company uses only machine hours as the activity measure to apply both variable and fixed overhead, and
that it includes all setup costs as variable factory overhead. What are a the Total Overhead Spending Variance, b the
Overhead Efficiency Variance, and c the total Overhead Flexible Budget Variance for the year? Indicate whether each
variance is favorable F or unfavorable U
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