1 / 11

110 likes | 238 Vues

Flexible Budgets. Overhead Cost Management. Chapter 17. Flexible overhead budgets. Basic formula. Flexible overhead budgets. Overhead cost variances. Used for control and evaluation of overhead costs Variable overhead variances Variable overhead spending variance

Télécharger la présentation
## Chapter 17

**An Image/Link below is provided (as is) to download presentation**
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.
Content is provided to you AS IS for your information and personal use only.
Download presentation by click this link.
While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

**Flexible Budgets**Overhead Cost Management Chapter 17**Flexible overhead budgets**• Basic formula**Overhead cost variances**• Used for control and evaluation of overhead costs • Variable overhead variances • Variable overhead spending variance • Variable overhead efficiency variance • Fixed overhead • Fixed overhead budget variance • Fixed overhead volume variance**Variable overhead variances**Actual variable overhead Actual activity X variable OH rate Standard activity X variable OH rate Variable overhead spending variance Variable overhead efficiency variance**Fixed overhead variances**Actual fixed overhead Budgeted fixed overhead Fixed overhead applied to WIP Fixed overhead budget variance Fixed overhead volume variance**Variable overhead variances**$2,785.00 14,270 hours X $0.19 = $2,711.30 14,000 hours X $0.19 = $2,660.00 $73.70 unfavorable Variable overhead spending variance $51.30 unfavorable Variable overhead efficiency variance**Variable overhead variances**• VOH spending variance • Total VOH cost is greater than the amount that should have been incurred at the actual hours worked • VOH efficiency variance • Number of hours worked is greater than the amount that should have been worked for the output achieved**Fixed overhead variances**$2,840.00 $2,400.00 14,000 hours X $0.15 $2,100.00 $440.00 unfavorable Fixed overhead budget variance $300.00 unfavorable Fixed overhead volume variance**Fixed overhead variances**• FOH budget variance • Actual FOH cost is greater than the amount budgeted • FOH volume variance • Volume of output was less than planned

More Related