C. FOH efficiency Variance = (1) - (2) = 750 (A) b. FOH Capacity Variance = (2) - (3) = 2,700 (F) FOH Calendar Variance = (3) - (4) = 1,800 (F) d. FOH Volume Variance = (1)-(4) - 3.750 (F) e. FOH Budget Variance = (4) - (5) = 5,000 (A) f. FOH Cost Variance = (1) - (5) = 1,250 (A) Variable Overhead Variances Computation of Required Values SRSH (1) R) 2 x 32,500 65,000 ARAH (3) R) SRAH (2) R) 2 x 33,000 66,000 68,000 SR = Budgeted Variable Overheads Budgeted Hours 60,000 30.000 = 2 per unit Where (1) SRSH = Standard Cost of Variable overheads = * 65,000 (2) SRAH = Standard Variable overhead for Actual Hours = 66,000 (3) ARAH = Actual Variable overhead = 68,000. a. Computation of Required ariances Variable overhead efficiency Variance = (1)-(2) = 1,000 (A) b. VOH Budget/ expenditure Variance = (2) - (3) = 2.000 (A) C. VOH Cost Variance = (1)-(3) = 3,000 (A) p 46 a. Illustration 18 The Cost Accountant of a Co. was given the following information regarding the OHs for Feb, 2013: Overhead Cost Variance 1,400 (A) Overheads Volume Variance 1,000 (A) b. Budgeted Hours for Feb, 2013: 1.200 Hours c. Budgeted OH for Feb, 2013: 6,000 d. Actual Rate of Recovery of OH 8 per hour a. You are required to assist him in computing the following for Feb, 2013 1. OHs expenditure Variance 2. Actual OH's incurred 3. Actual Hours for Actual Production 4. OHs Capacity Variance 5. OHs efficiency Variance 6. Standard Hours for Actual Production