OH variances $OH$ variances

whereas the predetermined variable overhead rate is $$3$ per direct labor hour.

During July, $48,880$ cars were registered in Bexar County, and $24,700$ direct labor hours were worked in registering those vehicles. For the month, variable overhead was $$72,020$ and fixed overhead was $$236,080.$

Note: In answering the following questions, do not use negative signs with your answers.

a$.$ Compute overhead variances using a four$-$variance approach.

b$.$ Compute overhead variances using a three$-$variance approach.

c$.$ Compute overhead variances using a two$-$variance approach.

Please answer all parts of the question.

The manager of the Texas Department of Transportation has determined that it typically takes $30$ minutes for the department$$s employees to register a new car. In Bexar County, the predetermined fixed overhead rate was computed on an estimated $26,000$ direct labor hours per month and is $$9$ per direct labor hour, whereas the predetermined variable overhead rate is $$3$ per direct labor hour.

During July, $48,880$ cars were registered in Bexar County, and $24,700$ direct labor hours were worked in registering those vehicles. For the month, variable overhead was $$72,020$ and fixed overhead was $$236,080.$

Note: In answering the following questions, do not use negative signs with your answers.

a$.$ Compute overhead variances using a four$-$variance approach.

VOH Spending Variance

Actual VOH $-$ Budgeted VOH $=$ VOH Spending Variance

Answer $1$

$72020$

$-$ Answer $2$

$74100$

$=$ Answer $3$

$2080$

Answer $4$

F

VOH Efficiency Variance

Budgeted VOH $-$ Applied VOH $=$ VOH Efficiency Variance

Answer $5$

$74100$

$-$ Answer $6$

$=$ Answer $7$

$0$

Answer $8$

U

FOH Spending Variance

Actual FOH $-$ Budgeted FOH $=$ FOH Spending Variance

Answer $9$

$236080$

$-$ Answer $10$

$0$

$=$ Answer $11$

$0$

Answer $12$

U

FOH Volume Variance

Budgeted FOH $-$ Applied FOH $=$ FOH Volume Variance

Answer $13$

$0$

$-$ Answer $14$

$0$

$=$ Answer $15$

$0$

Answer $16$

U

b$.$ Compute overhead variances using a three$-$variance approach.

OH Spending Variance

Actual OH $-$ Budget at Actual $=$ OH Spending Variance

Answer $17$

$0$

$-$ Answer $18$

$0$

$=$ Answer $19$

$0$

Answer $20$

Neither F or U

OH Efficiency Variance

Budget at Actual $-$ Budget at Standard $=$ OH Efficiency Variance

Answer $21$

$0$

$-$ Answer $22$

$0$

$=$ Answer $23$

$0$

Answer $24$

U

Volume Variance

Budget at Standard $-$ Applied OH $=$ Volume Variance

Answer $25$

$0$

$-$ Answer $26$

$0$

$=$ Answer $27$

$0$

Answer $28$

U

c$.$ Compute overhead variances using a two$-$variance approach.

Budget Variance

Actual OH $-$ Budgeted OH $=$ Budget Variance

Answer $29$

$0$

$-$ Answer $30$

$0$

$=$ Answer $31$

$0$

Answer $32$

Volume Variance

Budgeted OH $-$ Applied OH $=$ Volume Variance

Answer $33$

$0$

$-$ Answer $34$

$0$

$=$ Answer $35$

$0$

Answer $36$