13. Calculate the variable overhead cost variance.

Select the formula, then enter the amounts and compute the cost variance for variable overhead (VOH) and identify whether the variance is favorable (F) or unfavorable (U).

(

-

)

x

=

VOH Cost Variance

(

-

)

x

=

14. Calculate the variable overhead efficiency variance.

Select the formula, then enter the amounts and compute the efficiency variance for variable overhead and identify whether the variance is favorable (F) or unfavorable (U).

(

-

)

x

=

VOH Efficiency Variance

(

-

)

x

=

15. Calculate the total variable overhead variance

The total variable overhead variance is

.

16. Calculate the fixed overhead cost variance

Select the formula, then enter the amounts and compute the cost variance for fixed overhead (FOH) and identify whether the variance is favorable (F) or unfavorable (U).

-

=

Fixed Overhead Cost Variance

-

=

17. Calculate the fixed overhead volume variance

First, select the formula, then enter the amounts and compute the fixed overhead allocated to production. (Abbreviations used: SQ = standard quantity, AO = actual output.)

	x		=	Overhead allocated to production
	x		=

Now, select the formula, then enter the amounts and compute the fixed overhead volume variance and identify whether the variance is favorable (F) or unfavorable (U).

-

=

Fixed Overhead Volume Variance

-

=

18. Calculate the total fixed overhead variance.

The total fixed overhead variance is

.

Longman Company manufactures shirts. During June, Longman made 1,100 shirts but had budgeted production at 1,350 shirts. Longman gathered the following additional data: (Click on the icon to view the data.) Read the requirements. i Data Table = Fixed Overhead Cost Variance 17. Calculate the fixed overhead volume variance Variable overhead cost standard First, select the formula, then enter the amounts and compute the fixed overhead allocated to production. (Abbrevia 1 = Overhead allo = 1 Direct labor efficiency standard Actual amount of direct labor hours Actual cost of variable overhead Fixed overhead cost standard Budgeted fixed overhead $0.10 per DLHr 4.00 DLHr per shirt 4,470 DLHO $1,788 $0.20 per DLHr $1,080 Now, select the formula, then enter the amounts and compute the fixed overhead volume variance and identify whe = Fixed Overhead Volume Variance Actual cost of fixed overhead $1,140 18. Calculate the total fixed overhead variance. Print Done The total fixed overhead variance is