Model: Overhead variances

A cost accountant of a company was given the following information regarding the overheads for February:

  1. Overheads cost variance = Rs. 1,400 adverse.
  2. Overheads volume variance = Rs. 1,400 adverse.
  3. Budgeted hours for February = 1,200 hours.
  4. Budgeted overheads for February = Rs. 6,000.
  5. Actual rate of recovery of overheads = Rs. 8 per hour.

You are required to assist him in computing the following for February:

  1. Overheads-expenditure variance.
  2. Actual overheads incurred.
  3. Actual hours for actual production.
  4. Overheads-capacity variance.
  5. Overheads-Efficiency variance.
  6. Standard hours for actual production.