The Following Standards for Variable Manufacturing Overhead Have Been Established

question 134

Essay

The following standards for variable manufacturing overhead have been established for a company that makes only one product:
$$\begin{array} { | l | r | } \hline \text { Standard hours per unit of output } & 6.9 \text { hours } \\\hline \text { Standard variable overhead rate } & \$ 15.80 \text { per hour } \\\hline\end{array}$$
The following data pertain to operations for the last month:
$\begin{array}{|l|r|}\hline \text { Actual hours } & 6,100 \text { hours } \\\hline \text { Actual total variable overhead cost } & \$ 97,600 \\\hline \text { Actual output } & 800 \text { units } \\\hline\end{array}$
Required:
a)What was the variable overhead spending variance for the month?
b)What was the variable overhead efficiency variance for the month?

Identify key disclosures required for operating segments according to IFRS 8.

Understand the significance of different thresholds in determining reportable segments.

Grasp the concept and application of discrete and integral approaches in interim financial reporting under IAS 34.

Recognize the requirements for financial reporting in private companies versus public companies.

---

Definitions:

Oligopoly

A market structure in which only a few sellers offer similar or identical products.

Monopoly Outcome

A market situation where a single firm dominates production and sales, leading to potential inefficiency and higher prices.

Nash Equilibrium

A situation in which economic actors interacting with one another each choose their best strategy given the strategies that all the other actors have chosen.

Price Effect

The impact that a change in the price of a good or service has on consumer demand for that good or service.