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    13-48 Overhead Variances for Rivera Company

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    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 $______

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    Solution Summary

    This solution computes the flexible-budget variance, production-volume variance, spending variance, and efficiency variance and determines whether these overhead variances are favorable or unfavorable.