Standard Job Order Costing - Variance Analysis Spocial order lampe are manufactured in division S. Because of the precise nature of the process a standard cost system has been developed. The following standards are used for the special orders: "Fixed overheod is based on expected production of 4,012 customized lamps each morth. To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) while entries are mado to the acoounting system at standard. Variance analysis is used to analyze the differences. ISee The Light Projected lncome Statement For the Period Ending December 31, 20x1 Sales Cost of Goods Sold Gross Profit Selling Expenses: Fixed Variable Administrative Experses: Flxed Variable Tokal Selling and Administrasve Experses: Net Profit 5165,000.00190,000.00 I See The Light Projected Balance Sheet As of Decembor 31, 20x1 Current Assets Cash Accounts Recelvabio Inventory Fixed Assets Equipment Accumulded Deprociation Total Flred Assets Tceal Assets 13,200005213,41000 Current Liabilities Accounts Payable Total Liabilitiea Slockholder's Equity Common Slock Retained Earring Total Stockholdor's Equby Total Labilitios and Slockhelder's Equty Note: Show favorable variances as negative numbers What was the variable overhead efficiency variance? What was the variable OH spending variance? What is the foxed OH volume (denominator) varlance? What is the fred OH spending variance? Standard Job Order Costing - Variance Analysis Spocial order lampe are manufactured in division S. Because of the precise nature of the process a standard cost system has been developed. The following standards are used for the special orders: "Fixed overheod is based on expected production of 4,012 customized lamps each morth. To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) while entries are mado to the acoounting system at standard. Variance analysis is used to analyze the differences. ISee The Light Projected lncome Statement For the Period Ending December 31, 20x1 Sales Cost of Goods Sold Gross Profit Selling Expenses: Fixed Variable Administrative Experses: Flxed Variable Tokal Selling and Administrasve Experses: Net Profit 5165,000.00190,000.00 I See The Light Projected Balance Sheet As of Decembor 31, 20x1 Current Assets Cash Accounts Recelvabio Inventory Fixed Assets Equipment Accumulded Deprociation Total Flred Assets Tceal Assets 13,200005213,41000 Current Liabilities Accounts Payable Total Liabilitiea Slockholder's Equity Common Slock Retained Earring Total Stockholdor's Equby Total Labilitios and Slockhelder's Equty Note: Show favorable variances as negative numbers What was the variable overhead efficiency variance? What was the variable OH spending variance? What is the foxed OH volume (denominator) varlance? What is the fred OH spending variance
