13-48 Overhead Variances

13-48 Overhead Variances

Study Appendix 13. Consider the following data for the Rivera Company:

Factory Overhead

Fixed Variable

Actual incurred $14,200 $13,300

Budget for standard hours allowed

for output achieved 12,500 11,000

Applied 11,600 11,000

Budget for actual hours of input 12,500 11,400

From the above information, fill in the blanks below. Be sure to mark your variances F for favorable

and U for unfavorable.

a. Flexible-budget variance $______ Fixed $______

Variable $______

b. Production-volume variance $______ Fixed $______

Variable $______

c. Spending variance $______ Fixed $______

Variable $______

d. Efficiency variance $______ Fixed $______

Variable $______

13-48

Variances in dollars:

Flexible-budget variance 4,000 U Fixed 1,700 U1

Variable 2,300 U2 Production-volume variance 900 U Fixed 900 U3

Variable NA

Spending variance 3,600 U Fixed 1,700 U4

Variable 1,900 U5

Efficiency variance 400 U Fixed NA

Variable 400 U6 NA = not applicable

1. $14,200 - $12,500

2. $13,300 - $11,000

3. $12,500 - $11,600

4. $14,200 - $12,500

5. $13,300 - $11,400

6. $11,400 - $11,000