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Manufacturing Overhead Variance: Compute The Variable Manufacturing Overhead Spending and Efficiency Variances
Manufacturing Overhead Variance: Compute The Variable Manufacturing Overhead Spending and Efficiency Variances
Manufacturing Overhead Variance: Compute The Variable Manufacturing Overhead Spending and Efficiency Variances
Halobas’s
Halobas’s spending
spending variance
variance (VOSV)
(VOSV) for
for
variable
variable manufacturing
manufacturing overhead
overhead for
for
the
the week
week was:
was:
a.
a. $465
$465 unfavorable.
unfavorable.
b.
b. $400
$400 favorable.
favorable.
c.
c. $335
$335 unfavorable.
unfavorable.
d.
d. $300
$300 favorable.
favorable.
8-8
Quick Check
Halobas’s
Halobas’s spending
spending variance
variance (VOSV)
(VOSV) forfor
variable
variable manufacturing
manufacturing overhead
overhead for
for
the
the week
week was:
was:
a.
a. $465
$465 unfavorable.
unfavorable.
b.
b. $400
$400 favorable.
favorable.
VOSV = AH(AR - SR)
c.
c. $335
$335 unfavorable.
unfavorable.
VOSV = 1,550 hrs($3.30 - $3.00)
d.
d. $300 favorable.VOSV = $465 unfavorable
$300 favorable.
Quick Check
Halobas’s
Halobas’s efficiency
efficiency variance
variance (VOEV)
(VOEV) forfor
variable
variable manufacturing
manufacturing overhead
overhead for
for the
the
week
week was:
was:
a.
a. $435
$435 unfavorable.
unfavorable.
b.
b. $435
$435 favorable.
favorable.
c.
c. $150
$150 unfavorable.
unfavorable.
d.
d. $150
$150 favorable.
favorable.
Quick Check
Halobas’s
Halobas’s efficiency
efficiency variance
variance (VOEV)
(VOEV) for
for
variable
variable manufacturing
manufacturing overhead
overhead for
for the
the
week
week was:
was:
a.
a. $435
$435 unfavorable.
unfavorable.
b.
b. $435
$435 favorable.
favorable. 1,000 units × 1.5 hrs per unit
c.
c. $150
$150 unfavorable.
unfavorable.
d.
d. $150
$150 favorable.
favorable.
VOEV = SR(AH - SH)
VOEV = $3.00(1,550 hrs - 1,500 hrs)
VOEV = $150 unfavorable
8-11
Quick Check