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Homework answers / question archive / Variable overhead Expenses $ 200,000 $ 198,000 $ 292,500 Fixed overhead Expenses $ 265,000 $ 247,500 $ 365,625 Units Produced 65,000 44,000 Machine Hours 80,000 66,000 97,500 (a) and (b) Statement Showing Calculation of Variance Particulars Formula Amount Status Variable Cost Variance (Total std
| Variable overhead Expenses | $ 200,000 | $ 198,000 | $ 292,500 |
| Fixed overhead Expenses | $ 265,000 | $ 247,500 | $ 365,625 |
| Units Produced | 65,000 | 44,000 | |
| Machine Hours | 80,000 | 66,000 | 97,500 |
(a) and (b)
| Statement Showing Calculation of Variance | |||
| Particulars | Formula | Amount | Status |
| Variable Cost Variance | (Total std. Cost for Actual Output – Total Actual Cost for productive Hrs.) | 92,500 | Favourable |
| Variable Rate Variance | (Std. Rate/Hr. – Actual Rate/Hrs.) x Actual Productive Hrs. | 40,000 | Favourable |
| Variable Efficiency Variance | (Std. Hrs. for Actual Output – Actual Productive Hrs.) x Std. Rate/Hrs. | 52,500 | Favourable |
| Fixed Cost Variance | (Std. Fixed Overhead for Actual Output – Actual Fixed Overhead) | 100,625 | Favourable |
| Fixed Cost Expenditure Variance | (Budgeted Fixed Overhead for Budgeted Output – Actual Fixed Overhead) | (17,500) | Adverse |
| Fixed Cost Volume Variance | (Actual Output – Budgeted Output) x Std. Fixed Overhead/Unit | 118,125 | Favourable |
Can you break down the formulas in the variance descriptions, I don't know the numbers behind the descriptions to make the favorable or adverse numbers to the right.
