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.
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 12,000 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, 22,560 cars were registered in Bexar County, and 11,400 direct labor hours were worked in registering those vehicles. For the month, variable overhead was $33,240 and fixed overhead was $108,960. 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
| - | Answer
| = | Answer
| AnswerFUNeither F or U
|
VOH Efficiency Variance | |||||
---|---|---|---|---|---|
Budgeted VOH | - | Applied VOH | = | VOH Efficiency Variance | |
Answer
| - | Answer
| = | Answer
| AnswerFUNeither F or U
|
FOH Spending Variance | |||||
---|---|---|---|---|---|
Actual FOH | - | Budgeted FOH | = | FOH Spending Variance | |
Answer
| - | Answer
| = | Answer
| AnswerFUNeither F or U
|
FOH Volume Variance | |||||
---|---|---|---|---|---|
Budgeted FOH | - | Applied FOH | = | FOH Volume Variance | |
Answer
| - | Answer
| = | Answer
| AnswerFUNeither F or U
|
b. Compute overhead variances using a three-variance approach.
OH Spending Variance | |||||
---|---|---|---|---|---|
Actual OH | - | Budget at Actual | = | OH Spending Variance | |
Answer
| - | Answer
| = | Answer
| AnswerFUNeither F or U
|
OH Efficiency Variance | |||||
---|---|---|---|---|---|
Budget at Actual | - | Budget at Standard | = | OH Efficiency Variance | |
Answer
| - | Answer
| = | Answer
| AnswerFUNeither F or U
|
Volume Variance | |||||
---|---|---|---|---|---|
Budget at Standard | - | Applied OH | = | Volume Variance | |
Answer
| - | Answer
| = | Answer
| AnswerFUNeither F or U
|
c. Compute overhead variances using a two-variance approach.
Budget Variance | |||||
---|---|---|---|---|---|
Actual OH | - | Budgeted OH | = | Budget Variance | |
Answer
| - | Answer
| = | Answer
| AnswerFUNeither F or U
|
Volume Variance | |||||
---|---|---|---|---|---|
Budgeted OH | - | Applied OH | = | Volume Variance | |
Answer
| - | Answer
| = | Answer
| AnswerFUNeither F or U
|
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