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Managerial Accounting Chapter 8: Overhead Cost Variances The controller of your company suggests that you use a graphical representation of overhead variances. Standard machine hours

Managerial Accounting
Chapter 8: Overhead Cost Variances
The controller of your company suggests that you use a graphical representation of overhead variances. Standard machine hours are used to apply both variable overhead and fixed overhead.
There was an unfavorable variable overhead spending variance.
There was an unfavorable variable overhead efficiency variance.
There was a favorable production volume variance.
There was an unfavorable fixed overhead spending variance.
REQUIRED: Label each part of the two graphs.

image text in transcribed

A 00 B C D E F G Graph 1 Variable Overhead Graph 2: Fixed Overhead (A) (A) (C) Slope of Line - (D) (H) Area (G) (D) -(K) (1) () FL) Area (H) Area (1) 1 2 3 4 5 6 7 8 9 0 21 -2 -3 -4 -5 -6 7 -8 9 0 1 2 3 -4 5 6 :7 8 9 (B) (E) (F) Item A Component (Multiple choice drop down Item A Component (Multiple choice drop down) EN C COUWLOI- MUWLUI- E . I G+H+1 J(vertical distance) K(vertical distance) L (vertical distance) -1 -2 3 4 5 6 -7 -8 -9 ON O OOO ON Answer Choices by section (alphabetical order) Total Machine Hours Var OH $ per Machine Hour Actual price per machine hour Budget price per machine hour Actual machine hours Standard machine hours Actual cost Efficiency variance Spending variance Standard cost Answer Choices by section (alphabetical order) Fixed OH allocated Std Fixed OH per Machine Hour Total Fixed OH Cost Total Machine Hours Actual Fixed OH Allocated Fixed OH Budget Fixed OH Budget machine hours Standard machine hours Fixed OH Spending Var Overallocated Fixed OH Production Volume Variance 1 3 4 5 A 00 B C D E F G Graph 1 Variable Overhead Graph 2: Fixed Overhead (A) (A) (C) Slope of Line - (D) (H) Area (G) (D) -(K) (1) () FL) Area (H) Area (1) 1 2 3 4 5 6 7 8 9 0 21 -2 -3 -4 -5 -6 7 -8 9 0 1 2 3 -4 5 6 :7 8 9 (B) (E) (F) Item A Component (Multiple choice drop down Item A Component (Multiple choice drop down) EN C COUWLOI- MUWLUI- E . I G+H+1 J(vertical distance) K(vertical distance) L (vertical distance) -1 -2 3 4 5 6 -7 -8 -9 ON O OOO ON Answer Choices by section (alphabetical order) Total Machine Hours Var OH $ per Machine Hour Actual price per machine hour Budget price per machine hour Actual machine hours Standard machine hours Actual cost Efficiency variance Spending variance Standard cost Answer Choices by section (alphabetical order) Fixed OH allocated Std Fixed OH per Machine Hour Total Fixed OH Cost Total Machine Hours Actual Fixed OH Allocated Fixed OH Budget Fixed OH Budget machine hours Standard machine hours Fixed OH Spending Var Overallocated Fixed OH Production Volume Variance 1 3 4 5

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