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OH variances The manager of the Texas Department of Transportation has determined that it typically takes 3 0 minutes for the department s employees to
OH variances
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
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VOH Efficiency Variance
Budgeted VOH Applied VOH VOH Efficiency Variance
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FOH Spending Variance
Actual FOH Budgeted FOH FOH Spending Variance
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FOH Volume Variance
Budgeted FOH Applied FOH FOH Volume Variance
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b Compute overhead variances using a threevariance approach.
OH Spending Variance
Actual OH Budget at Actual OH Spending Variance
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OH Efficiency Variance
Budget at Actual Budget at Standard OH Efficiency Variance
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Volume Variance
Budget at Standard Applied OH Volume Variance
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c Compute overhead variances using a twovariance approach.
Budget Variance
Actual OH Budgeted OH Budget Variance
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Volume Variance
Budgeted OH Applied OH Volume Variance
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