Question

Var.--------------spend----------eff-------------vol.

var MOH--------$7,500F-------$30,000 U-------(B)
fixed MOH------$28,000U-------(A)-----------$80,000U

8) The above table is a ________.
A) 4-variance analysis
B) 3-variance analysis
C) 2-variance analysis
D) 1-variance analysis

9) In the above table, the amounts for (A) and (B), respectively, are ________.
A) $22,500 U; $110,000 U
B) $22,500 U; Zero
C) Zero; $110,000 U
D) Zero; Zero

10) In a combined 3-variance analysis, the total spending variance would be ________.
A) $20,500 F
B) $22,500 U
C) $20,500 U
D) $37,500 F

11) The total production-volume variance should be ________.
A) $80,000 F
B) $80,000 U
C) $108,000 F
D) $108,000 U

12) The total overhead variance should be ________.
A) $145,500 F
B) $130,500 U
C) $145,500 U
D) $130,500 F

Answer 1

The table provided is a 2-variance analysis, consisting of spending and efficiency variances. The amounts for (A) and (B) are $28,000U and $80,000U, respectively. In a combined 3-variance analysis, the total spending variance would be $108,000U. The total production-volume variance and total overhead variance cannot be determined based on the information provided.

Step-by-step explanation:

The table provided is a 2-variance analysis. It includes the variances for spending and efficiency. The spending variance is represented by the difference between the actual and budgeted manufacturing overhead (MOH) costs, which is $7,500F (F stands for favorable). The efficiency variance is the difference between the standard hours allowed and the actual hours worked, multiplied by the standard MOH rate, resulting in a variance of $30,000U (U stands for unfavorable).

The amounts for (A) and (B), respectively, in the table are $28,000U and $80,000U. This means that the fixed MOH variance (A) is unfavorable by $28,000, indicating that the actual fixed MOH costs exceeded the budgeted amount. On the other hand, the variable MOH variance (B) is unfavorable by $80,000, indicating that the actual variable MOH costs exceeded the budgeted amount.

In a combined 3-variance analysis, the total spending variance would be the sum of the variable MOH variance (B) and the fixed MOH variance (A), resulting in a total spending variance of $108,000U.

The total production-volume variance, which is not given in the table, is the difference between the standard hours allowed and the hours at 100% efficiency, multiplied by the standard MOH rate. Based on the information provided, we cannot determine the total production-volume variance.

The total overhead variance is the sum of the total spending variance and the total production-volume variance. Given that the total spending variance is $108,000U (unfavorable) and the total production-volume variance is unknown, we cannot determine the total overhead variance.