ACCT 302 Midterm 2 Formula focused

Variable Overhead Spending Variance

AH (AR - SR)

Variable Overhead Efficiency Variance

SR (AH-SHA)

Variable Overhead flexible-budget variance

Actual Costs incurred - Flexible-budget amount

Fixed Overhead Budget Variance

Actual FOH - Budgeted FOH

Production-Volume Variance

Budgeted FOH - Fixed OH allocated to WIP

SQA

SQ * Actual Output

SHA

SH * Actual Output

Actual Price

Total Cost of DM/Total Q Purchased

Price Variance

(AP - SP) * AQ Purchased

Efficiency Variance

(AQ-SQA) * SP

Actual Rate

Total DL Cost/Actual Hours Worked

Actual FOH

AQ * AR

Budgeted FOH

DH * FPOHR

Allocated FOH

SHA * FPOH

How do we calulate the variable overhead on the flexible budget

SQA * SR

How do we calculate the static, flexible, and spending variance for FIXED overhead?

Actual FOH - Budgeted FOH

Production greater than sales

means that inventory increases and absorption is greater than variable

Production is less than sales

means that inventory decreases and absorption is less than variable

Production is the same as sales

means there is no change and absorption is equal to variable

Absorption Costing product costs

DM + DL + VOH + FOH

Variable Costing product costs

DM + DL + VOH