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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 variances
whereas the predetermined variable overhead rate is $ per direct labor hour.
During July, cars were registered in Bexar County, and direct labor hours were worked in registering those vehicles. For the month, variable overhead was $ and fixed overhead was $
Note: In answering the following questions, do not use negative signs with your answers.
a Compute overhead variances using a fourvariance approach.
b Compute overhead variances using a threevariance approach.
c Compute overhead variances using a twovariance approach.
Please answer all parts of the question.
The manager of the Texas Department of Transportation has determined that it typically takes minutes for the departments employees to register a new car. In Bexar County, the predetermined fixed overhead rate was computed on an estimated direct labor hours per month and is $ per direct labor hour, whereas the predetermined variable overhead rate is $ per direct labor hour.
During July, cars were registered in Bexar County, and direct labor hours were worked in registering those vehicles. For the month, variable overhead was $ and fixed overhead was $
Note: In answering the following questions, do not use negative signs with your answers.
a Compute overhead variances using a fourvariance approach.
VOH Spending Variance
Actual VOH Budgeted VOH VOH Spending Variance
Answer
Answer
Answer
Answer
F
VOH Efficiency Variance
Budgeted VOH Applied VOH VOH Efficiency Variance
Answer
Answer
Answer
Answer
U
FOH Spending Variance
Actual FOH Budgeted FOH FOH Spending Variance
Answer
Answer
Answer
Answer
U
FOH Volume Variance
Budgeted FOH Applied FOH FOH Volume Variance
Answer
Answer
Answer
Answer
U
b Compute overhead variances using a threevariance approach.
OH Spending Variance
Actual OH Budget at Actual OH Spending Variance
Answer
Answer
Answer
Answer
Neither F or U
OH Efficiency Variance
Budget at Actual Budget at Standard OH Efficiency Variance
Answer
Answer
Answer
Answer
U
Volume Variance
Budget at Standard Applied OH Volume Variance
Answer
Answer
Answer
Answer
U
c Compute overhead variances using a twovariance approach.
Budget Variance
Actual OH Budgeted OH Budget Variance
Answer
Answer
Answer
Answer
Volume Variance
Budgeted OH Applied OH Volume Variance
Answer
Answer
Answer
Answer
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