Question: I need explanations and examples in complete detail for each of the following: Compute the OH variances variable OH spending and efficiency variances and the

I need explanations and examples in complete detail for each of the following:

Compute the OH variances variable OH spending and efficiency variances and the fixed OH spending and production volume variances. The second problem is the preparation of absorption and variable costing income statements no beginning inventory but an ending inventory. Also, an explanation as to why the incomes differ including computations will be required.

  1. Computing a flexible budget and the sales volume variance and the flexible budget variance (in total and for each of the costs).
  2. Computing the raw material and direct labor variances. The price variance for raw materials will be computed when the materials are used.
  3. Computing variable OH and fixed OH variances spending variances for both and the efficiency variance for variable OH and the production volume variance for fixed OH also, an understanding of what the production volume variance is measuring. These computations will be in problem one noted above.
  4. Computation of variable and absorption based income also, a general understanding of what the difference is between the two methods. These computations will be in problem two noted above.
  5. Understanding what the formula for a straight line represents.
  6. How simple regression differs from multiple regression.
  7. In general how r-squared is computed using residuals squared.
  8. Simple computations for special one-time orders, make or buy, and other short term decisions including an understanding of what data is relevant and what data is not relevant related to the decision.

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