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FOR LINDA 13-48 Overhead Variances Study Appendix 13. Consider

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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 $______

Appendix 13: Comparisons of Production-Volume Variance with
Other Variances
The only new variance introduced in this chapter is the production-volume variance, which arises
because fixed-overhead accounting must serve two masters: the control-budget purpose and the
product-costing purpose. Let’s examine this variance in perspective by using the approach originally
demonstrated in Exhibit 8-9. The results of the approach appear in Exhibit 13-11, which deserves your
careful study, particularly the two footnotes. Please ponder the exhibit before reading on.
Exhibit 13-12 graphically compares the variable- and fixed-overhead costs analyzed in Exhibit
13-11. Note how the control-budget line and the product-costing line (the applied line) are superimposed
in the graph for variable overhead but differ in the graph for fixed overhead.
Underapplied or overapplied overhead is always the difference between the actual overhead
incurred and the overhead applied. An analysis may then be made:
Accounting Vocabulary
underapplied overhead flexible-budget
varian = ce
? ?
? ?
? ?
? ?
r variable overhead
for f
= $30,000 + 0 = $30,000
ixed overhead = $70,000 + $100,000 = $170,000
Hi Customer

Thanks for requesting me. Is this the last one or do you have more for me as this will take some time to complete.


Customer: replied 6 years ago.
I do have one more, and this can wait with the other pending question, 12-59. Tomorrow is fine. Thank you
I will finish everything by 11 PM EST or before. Just stuck with something personal now.

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