Question

The total variance is $9700 favourable. The total materials variance is $4300 favourable. The total labour...

The total variance is $9700 favourable. The total materials variance is $4300 favourable. The total labour variance is twice the total overhead variance, both which are favourable. What is the total overhead variance?

$2700

$4300

$1800

$900
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
The correct answer is "$1,800".
Calculation:
Data Given in the Question:
Direct Labour variance = 2*Overhead Variance
Materials Variance = $4,300 favourable
Total Variance = $9,700 favourable
Now, let overhead variance be "X".
Hence, Direct Labour variance = 2X
Total Variance = Materials Variance + Labour Variance + Overheads Variance
$9,700 = $4,300 + 2X + X
3X = $5,400
X = $1,800
Therefore, Overheads Variance = $1,800 favourable
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
How would a very large Favourable Fixed Overhead Flexible Budget variance cause an unfavourable Labour Efficiency...
How would a very large Favourable Fixed Overhead Flexible Budget variance cause an unfavourable Labour Efficiency Variance and a unfavourable Material Efficiency Variance
8. What does a favourable direct materials price variance indicate? a. The actual cost of materials...
8. What does a favourable direct materials price variance indicate? a. The actual cost of materials purchased was greater than the standard cost of materials purchased. b. The standard cost of materials purchased was less than the actual cost of materials purchased. c. The standard cost of materials purchased was greater than the actual cost of materials purchased. d. The actual quantity of materials used was less than the standard quantity of materials used for actual production. 9. In flexible...
The calculation of direct labour variances shows a favourable labour rate variance of​ £5,000 and an...
The calculation of direct labour variances shows a favourable labour rate variance of​ £5,000 and an unfavourable labour efficiency variance of​ £5,000. Which of the following is the best interpretation of this​ result?     A.   The departmental manager was pleased with the efficiency of working and favoured all employees with a rise in wage rates.     B.   The employees worked inefficiently and so their wages were reduced to match the cost of the lost efficiency.     C.   The employees were...
Aaha Inc. produces premium protective automotive covers. The direct materials and direct labour standards for one...
Aaha Inc. produces premium protective automotive covers. The direct materials and direct labour standards for one car cover are as follows: Standard Quantity or Hours Standard Price or Rate Standard Cost   Direct materials 9.0 metres of cloth $ 10 per metre $ 90.00   Direct labour 0 hours $ 20 per hour $ 7   Variable overhead 0 hours $ 8 per hour $ 3 Budgeted fixed overhead cost is $17,400, and the normal production volume is 2,885 car covers. Overhead is...
If more direct materials were used than expected at standard: 1)The direct materials efficiency variance would...
If more direct materials were used than expected at standard: 1)The direct materials efficiency variance would be favourable 2)The direct labour efficiency variance would be unfavourable 3)The direct materials price variance would be favourable 4) The direct materials efficiency variance would be unfavourable
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg...
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $5 per kilogram) $10.00 Direct labour (2 hours at $12 per hour) 24.00 Variable manufacturing overhead 11.45 Fixed manufacturing overhead 7.05 Total standard cost per unit $52.50 Actual costs for producing 2,710 units were as follows: Direct materials used 5,990 kg Direct materials purchased (6,440 kg) $30,912 Direct labour (6,820 hours) $68,882 Variable manufacturing costs $32,300 Fixed manufacturing costs $17,600 Calculate...
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg...
Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $5 per kilogram) $10.00 Direct labour (2 hours at $12 per hour) 24.00 Variable manufacturing overhead 11.85 Fixed manufacturing overhead 6.15 Total standard cost per unit $52.00 Actual costs for producing 2,690 units were as follows: Direct materials used 5,920 kg Direct materials purchased (6,730 kg) $32,304 Direct labour (6,950 hours) $67,415 Variable manufacturing costs $32,200 Fixed manufacturing costs $17,700 1....
A favourable variable manufacturing overhead efficiency variance may be interpreted as meaning which of the following...
A favourable variable manufacturing overhead efficiency variance may be interpreted as meaning which of the following if machine hours are the cost allocation base? Employees used too much electricity during production. Improved quality of materials resulting in less downtime to clean the machines of debris. Excess supplies were used. Too much of the cost driver was used.
5. Tractor Corporation produces toy tractors. What is the efficiency variance for direct materials? The company...
5. Tractor Corporation produces toy tractors. What is the efficiency variance for direct materials? The company uses the following direct cost categories: Category Standard Inputs for 1 output Std. Cost per input Direct Materials 4.00 $12.50 Direct Labour 1.40 9.50 Direct Marketing 0.54 5.50 Actual performance for the company is shown below: Actual output: 5,000 units Direct Materials: Materials costs $299,000 Input purchased and used 23,000 Actual price per input $13.00 Direct Manufacturing Labour: Labour costs $95,000 Labour-hours of input...
Finn Ltd., a manufacturer of cars, applies overhead based on direct labour hours. For 20x3, total...
Finn Ltd., a manufacturer of cars, applies overhead based on direct labour hours. For 20x3, total overhead is estimated to be $1608428 and total direct labour hours are estimated to be 158990. Finn is working on Job 24, which currently has $32642 in direct materials and 480 hours (at a rate of $16 per hour) of direct labour attached to it. Below is the expected costs to complete the job: Direct materials $17399 Direct labour hours 538 hours What is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT