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    Volume Variance

    Uploaded by

    Rosemarie Cruz
    The document provides budgeted and actual manufacturing overhead data for Palawan Manufacturing Company for the year 2010. It shows budgeted and actual direct labor hours and manufacturing overhead costs. It also provides data on the overhead application rate and budgeted vs actual overhead costs for Bestman Clothing Company for 2008. This data can be used to calculate variances such as overhead applied variance, fixed volume variance, spending variance, and net variance.

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    © All Rights Reserved
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    Volume Variance

    Uploaded by

    Rosemarie Cruz
    170 views3 pages
    The document provides budgeted and actual manufacturing overhead data for Palawan Manufacturing Company for the year 2010. It shows budgeted and actual direct labor hours and manufacturing overhead costs. It also provides data on the overhead application rate and budgeted vs actual overhead costs for Bestman Clothing Company for 2008. This data can be used to calculate variances such as overhead applied variance, fixed volume variance, spending variance, and net variance.

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    Volume variance

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    The document provides budgeted and actual manufacturing overhead data for Palawan Manufacturing Company for the year 2010. It shows budgeted and actual direct labor hours and manufacturing overhead costs. It also provides data on the overhead application rate and budgeted vs actual overhead costs for Bestman Clothing Company for 2008. This data can be used to calculate variances such as overhead applied variance, fixed volume variance, spending variance, and net variance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    170 views3 pages

    Volume Variance

    Uploaded by

    Rosemarie Cruz
    The document provides budgeted and actual manufacturing overhead data for Palawan Manufacturing Company for the year 2010. It shows budgeted and actual direct labor hours and manufacturing overhead costs. It also provides data on the overhead application rate and budgeted vs actual overhead costs for Bestman Clothing Company for 2008. This data can be used to calculate variances such as overhead applied variance, fixed volume variance, spending variance, and net variance.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Items 16 to 19 are based on th„ e t.

    Selected data for the Palawan Mannf T’?* data: follow: actunng Company for Chapter
    1 the year 2010 2

    Budgeted Actual
    for Year for Year
    Direct labor hours
    Manufacturing Overhead 260,OOQ 248,300
    Fixed Variable
    P 585,'000 P 578,400
    Total 1,092,000 1,039,940
    Pl,677,000 Pl,638,340
    Oveihead is applied on the basis
    of direct labor hours.

    4. What is the over or underapplied overhead for the year?

    a. P16,805 overapplied
    b. P16,8O5 underapplied
    c. Pl5,800 overapplied
    d. P15,800 underapplied

    5. What is the fixed volume variance?

    a. P26,325 favorable
    b. P26,325 unfavorable
    c. P36,325 favorable
    d. P36,325 unfavorable

    6. What is the spending variance?

    a. P8,500 favorable
    b. P8,500 unfavorable
    c. P9,520 favorable •
    d. P9,520 unfavorable

    7. What is the net variance?


    a. Pl6,805 favorable Chapter
    2 b. T 16,805 unfavorable 2
    c. P 15,800 favorable
    d. P15,8OO unfavorable

    Items 20 to 23 are based on the following data:


    Bestman Clothing Company uses the direct labor hours method for
    applying manufacturing overhead. The overhead apphca' on rate for
    2008 is P8.60 per hour, based on anticipated fixed costs of P348,000
    and anticipated variable costs of P684,000, with an expect' c o ome
    of 120,000 labor hours.

    During the year, the company actually operated for 115,800 hours,
    incurring fixed overhead of P348,C00 and variable overhead of
    P637,880.

    8. What is the under or overapplied manufacturing overhead for


    the year?

    a. Pl0,500 underapplied
    b. P10,500 overapplied
    c. P10,000 underapplied
    d. P10,000 overapplied

    9. What is the fixed volume variance?

    a. P12,180 favorable <


    b. P12,180 unfavorable
    c. Pl5,180 favorable
    d. P15,180 unfavorable

    10. What is the spending variance?

    a. P22,180 favorable
    b. P22,180 unfavorable
    c. P32,180 favorable Chapter
    3 d. P32,180 unfavorable 2

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