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OH variances O H variances whereas the predetermined variable overhead rate is $ 3 per direct labor hour. During July, 4 8 , 8 8

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 departments 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
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