管理会计MAchap010.ppt

The total standard hours is the amount of time Hanson’s employees should have worked to make 1,000 Zippies. We find the total standard hours by multiplying the 1.5 standard hours for one Zippy times the 1,000 Zippies made. Now that we know the total standard hours, let’s calculate the variable manufacturing overhead efficiency variance. We find the variable manufacturing overhead efficiency variance by multiplying the standard rate for variable manufacturing overhead times the difference between the actual hours of labor and standard hours of labor. The $150 unfavorable variable manufacturing overhead efficiency variance results because Hanson’s employees worked 50 hours more than standard to make 1,000 Zippies at a standard variable manufacturing overhead rate of $3.00 per hour. What is Hanson’s rate variance for variable manufacturing overhead for the week? We find the actual variable manufacturing overhead rate by dividing the $5,115 total variable manufacturing overhead cost by $1,550 direct labor hours actually worked. Now that we know the actual variable manufacturing overhead rate, let’s calculate the variable manufacturing overhead rate variance. We find the variable manufacturing overhead rate variance by multiplying the actual hours worked times the difference between the actual variable manufacturing overhead rate per hour and the standard variable manufacturing overhead rate per hour. The $465 unfavorable variable manufacturing overhead rate variance results because Hanson’s actual variable manufacturing overhead rate per labor hour is $0.30 per hour more than the standard variable manufacturing overhead rate per hour for the 1,550 hours actually worked. Just as we did with labor and material variances, we can summarize the variable manufacturing overhead variance computations in a convenient three-column format. You may find this three-column format more helpful than the equations that we used to answer the previous two questions. When th