Model: Overhead variances
A cost accountant of a company was given the following information regarding the overheads for February:
- Overheads cost variance = Rs. 1,400 adverse.
- Overheads volume variance = Rs. 1,400 adverse.
- Budgeted hours for February = 1,200 hours.
- Budgeted overheads for February = Rs. 6,000.
- Actual rate of recovery of overheads = Rs. 8 per hour.
You are required to assist him in computing the following for February:
- Overheads-expenditure variance.
- Actual overheads incurred.
- Actual hours for actual production.
- Overheads-capacity variance.
- Overheads-Efficiency variance.
- Standard hours for actual production.