I-17.

03

In the boxed areas provided, enter actual hours (or other application base), standard hours (or other
application base), actual amount spent on variable overhead, and the standard variable overhead rate.
Variable factory overhead variances will be automatically calculated, along with related journal entries.
The initial values that are already entered correspond to values used in the example in the textbook. Try
alternative values and closely consider and evaluate the changes to the variance calculations.

Enter the actual hours (or other application base) to achieve output >>> 12,500

Enter the standard hours (or other application base) to achieve output >>>> 10,200

Enter the actual amount spent on variable factory overhead >>>> $ 105,000.00

Enter the standard variable overhead rate >>>> $ 10.00

Actual cost Standard cost

10,200

Total
10.00
variance

$ 105,000.00 $ (3,000.00) $ 102,000.00

Actual use @
standard
 I-17.03

12,500

Spending Efficiency
10.00
Variance Variance

$ 20,000.00 $ 125,000 $ (23,000.00)

Work in Process Inventory 102,000.00

Variable Overhead Efficiency Variance 23,000.00
Variable Overhead Spending Variance 20,000.00
Factory Overhead 105,000.00

To increase work in process for the standard variable overhead and

record the related efficiency and spending variances