What are the steps in developing a budgeted variable overhead cost-allocation rate?

8-8: What are the steps in developing a budgeted fixed overhead rate?

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What are the factors that affect the spending var…
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What are the steps in developing a budget variable overhead cost allocation rate?
How does the planning of fixed overhead costs differ from the planning of variable overhead costs quizlet?
What are the variances in a for variance analysis?
What may the variable overhead flexible budget variance be further subdivided into?

8-16: Variable manufacturing overhead, variance analysis.For June 2014, each suit is budgetedto take 4 labor-hours. Budgeted variable manufacturing overhead cost per labor-hour is $12. Thebudgeted number of suits to be manufactured in June 2014 is 1,040.Actual variable manufacturing costs in June 2014 were $52,164 for 1,080 suits started andcompleted. There was no beginning or ending inventories of suits. Actual direct manufacturinglabor-hours for June were 4,536.1. Compute the flexible-budget variance, the spending variance, and the efficiency variance forvariable manufacturing overhead.

2. Comment on the results.

8-17: Fixed manufacturing overhead, variance analysis (continuation of 8-16). Data pertaining to

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What are the factors that affect the spending var…

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Cost Accounting A Managerial Emphasis

Chapter 8

Flexible Budgets, Overhead Cost Variances, and Management Control

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What are the steps in developing a budget variable overhead cost allocation rate?

12-4 Steps in developing a budgeted variable-overhead cost rate are: 1. Choose the period to be used for the budget, 2. Select the cost-allocation bases to use in allocating variable overhead costs to the output produced, 3. Identify the variable overhead costs associated with each cost-allocation base, and 4.

How does the planning of fixed overhead costs differ from the planning of variable overhead costs quizlet?

How does the planning of fixed overhead costs differ from the planning of variable overhead costs? At the start of an accounting period, a large percentage of fixed overhead costs are locked-in, whereas ongoing operating decisions determine the variable overhead costs.

What are the variances in a for variance analysis?

The Role of Variance Analysis When standards are compared to actual performance numbers, the difference is what we call a “variance.” Variances are computed for both the price and quantity of materials, labor, and variable overhead and are reported to management.

What may the variable overhead flexible budget variance be further subdivided into?

Answer and Explanation: The correct answer is C) Spending and efficiency variance. The variable overhead flexible budget is classified into spending variance and efficiency variance.