Overhead Variances-CPA BEC Exam-Cost Accounting-Darius Clark-variance analysis

The AICPA requires a BEC candidate to understand variance analysis for direct materials, direct labor and manufacturing overhead. These overhead variances seem complicated at first and that is why CPA Candidates need good instruction. NASBA will test you on these variances so be ready before you visit the Prometric site. Your CPA Exam review should include budgeting and variance analysis so that your cost and managerial accounting concepts are complete. You need to know why a variance is favorable or unfavorable and how to calculate the amount. Overhead variances include two spending variances and two efficiency variances, a total of four overhead variances. The net of the four overhead variances equals the amount of underapplied or overapplied overhead in the manufacturing overhead T account. There are two overhead variances that are variable and two that are fixed. The fixed overhead spending variance is usually the easiest of the 4 overhead variances to calculate but the fixed overhead volume variance can sometimes be the most complicated of the four overhead variances. The CPA Exam blueprint requires other BEC topics also including economics, Information technology, corporate governance, and financial management. Ratios and formulas are often tested but sometimes the CPA Exam question provides the ratio and you must analyze the reason why the ratio increased or decreased. At i-75 CPA Review we try anticipate the next question to be asked based on the question that you just studied.

[@cocoa5117]

Excellent teacher!

[@GENIUSA1A]

In the FOH for calcullating budget overhead, shouldn't you divide $.50/3 to get per hour cost?

[@SK2-33]

I thought so too but it is actually "$0.50 for every 3 hours of labor" meaning to get per hour rate it would be 0.50 divided by 3

[@SK2-33]

And here we do not need per hour cost but per unit cost

[@harleengonzalez2364]

Where did you get the 16000 relevant range number?

[@mahamkalisravanthi5672]

What is the answer for ur MCQ?

[@timilehin1787]

i got $6,240

[@GENIUSA1A]

@@timilehin1787 Me too