Overhead Variances
ACC 561 Q13-48 Study Appendix 13
Question 13-48, Overhead Variances, on p. 622
ACC 561 Q13-48 Rivera Company
3. Individual Assignment: Text Exercises
Question 13-48, Overhead Variances, on p. 622
Axia College of University of Phoenix (UoP)
Introduction to Management Accounting: Horngren, C. T., Sundem, G. L., Stratton, W. O., Burgstahler, D., & Schatzberg, J. (2008).
Introduction to Management Accounting (14th ed.). Upper Saddle River, New Jersey: Pearson-Prentice Hall.
Complete the following Problem Sets from the text. Show your work.
13-48 Overhead Variances
Study Appendix 13. Consider the following data for the Rivera Company: SOLUTION
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 favourable 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 $______
