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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 37
Calculating the Variable Overhead Spending and Efficiency Variances
Refer to Cornerstone Exercise 9.6.
Required:
1. Calculate the variable overhead spending variance using the formula approach. (If you compute the actual variable overhead rate, carry your computations out to five significant digits and round the variance to the nearest dollar.)
2. Calculate the variable overhead efficiency variance using the formula approach.
3. Calculate the variable overhead spending variance and variable overhead efficiency variance using the three-pronged graphical approach.
4. What if 26,100 direct labor hours were actually worked in February? What impact would that have had on the variable overhead spending variance? On the variable overhead efficiency variance?
Refer to Cornerstone Exercise 9.6.
Required:
1. Calculate the variable overhead spending variance using the formula approach. (If you compute the actual variable overhead rate, carry your computations out to five significant digits and round the variance to the nearest dollar.)
2. Calculate the variable overhead efficiency variance using the formula approach.
3. Calculate the variable overhead spending variance and variable overhead efficiency variance using the three-pronged graphical approach.
4. What if 26,100 direct labor hours were actually worked in February? What impact would that have had on the variable overhead spending variance? On the variable overhead efficiency variance?
Explanation
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1.To calculate the variable overhead spe...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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