Pertemuan 5
Flexible Budgets and
Overhead Analysis
Pengertian
Flexible Budget atau Anggaran Variabel
Adalah anggaran yang di desain untuk
mencakup jangkauan aktivitas yang
digunakan untuk mengembangkan biaya
yang dianggarkan pada titik manapun
dalam rentang aktivitas tersebut untuk
dibandingkan dengan biaya
sesungguhnya pada suatu perusahaan.
McGraw-Hill/Irwin
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Definisi lain menyatakan :
Flexible budget adalah anggaran yg
dapat disesuaikan dengan berbagai
tingkat aktivitas guna mncerminkan
bagaimana biaya-biaya berubah seiring
dengan perubahan volume produksi.
McGraw-Hill/Irwin
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Flexible budget berbeda denga anggaran
Statis. Anggaran statis adalah anggaran yang
dibuat untuk satu tingkat kegiatan (one level of
activity) selama jangka waktu tertentu.
Contohnya persentase dari kapasitas, jumlah
produk yang dihasilkan selama jangka waktu
tertentu, jumlah jam yang dikerjakan dan
lainnya.
McGraw-Hill/Irwin
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a.
b.
Perbedaan Anggaran Statis dengan
Anggaran Fleksibel
Flexible Budget tidak membatasi diri hanya
pada satu tingkat aktivitas, tetapi pada
beberapa tingkat kisaran aktivitas (range
activity atau relevant activity).
Static Budget diarahkan pada satu tingkat
saja.
McGraw-Hill/Irwin
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b. Dalam pendekatan Flexible Budget
hasil dari actual tidak harus
dibandingkan biaya yang dibudgetkan
pada tingkat budget aktivitas semula,
pada static budget harus dibandingkan
McGraw-Hill/Irwin
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c. Flexible Budget bersifat dinamik ,.
Static budget bersifat statis.
d. Pada Flexible Budget terdapat under
or over applied, dan static budget
istilah ini tidak ada.
McGraw-Hill/Irwin
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2. Karaktetristik Flexible Budget
1) . Ditujukan ke arah tingkat kapasitas
keseluruhan yang berada dalam “range relevan
atau relevant range” dari pada tingkat aktivitas
tertentu dan hanya ditujukan kearah satu tingkat
aktivitas (Denomonitory Activity). Denominator
Activitry adalah angka yang ditentukan dalam
flexible budget yang dapat digunakan untuk
menentukan jumlah total biaya overhead pabrik
pada tingkat aktivitas tertentu dari relevant range.
Tarif biaya overhead overhead pabrik ditentukan
dimuka =
BIaya FOH Flexible budget/Denominator activity.
McGraw-Hill/Irwin
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2).Bersifat dinamis dari anggaran
statis, karena flexible budget
dapat disesuaikan dengan tingkat
aktivitas apa pun yang berada
dalam relevant range/activity,
sekalipun periode sudah berlalu.
McGraw-Hill/Irwin
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3). Dalam masalah perhitungan
Overhead (non manufaktur) dan
Factory Overhead (Manufaktur)
terdapat 4 faktor yang dapat di
analisis dalam flexible budget
yaitu :
McGraw-Hill/Irwin
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(1) FOH ( Pabrik dan Non pabrik ) umumnya
terdiri dari atas biaya yang banyak
terpisah satu sama lainnya
(2) Biaya yang terpisah ini kerap sangat kecil
nilai $/rupiahnya sehingga menyulitkan
untuk mengendalikannya dengan cara
yang sama dengan pengendalian
Direct Material Cost dan Direct Labor
Cost.
McGraw-Hill/Irwin
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(3). Biaya yg terpisah lainnya kecil ini sering
kali merupakan tanggung jawab atau
pusat pertanggung jawaban dari manajer
yang saling berbeda pada segemen yang
berbeda pula .
(4). Biaya FOH ( khusus pabrik) berbeda
perilaku biayanya , variabel, tetap dan
semi variabel.
McGraw-Hill/Irwin
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Tahap-tahap Penyusunan
Flexible budget
.
1. Menentukan kisaran relevan atas aktivitas yg
diharapkan berfluktuasi masa periode yang
akan datang.
2. Menganalisis biaya pada relevant range
dalam elemen variabel,tetap dan semi
variabel..
3. Memisahkan biaya berdasarkan perilakunya
dan menetupan tarif untuk biaya, tetap ,
variabel dan semi variabel
McGraw-Hill/Irwin
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4. Menggunakan tarif untuk bagian variabel dari
biaya, menyusun sebagai budget yg
memperlihatkan biaya-biaya apa yg akan
dikeluarkan pada berbagai titik operasi
pada semua relevant range.
5.Melakukan analisis Varians khusus Overhead
dan Factory Overhead atas Biaya Variabel
dan Biaya Variabel untuk mengukur kinerja
perusahaan .
McGraw-Hill/Irwin
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Ada 4 varians dalam Flexible
Budget yaitu:
1 Varians variabel (Variable Manufacturing
Overhaed Variance ). VMOV
1).Spending V = Variable manufacturing
Overhead
Spending variance) VMOSV = AH(AR-SR)=
(AOVR X AH)- (SOVRXAH) = (AOVR-SOVR) AH.
2). Variable Manufacturing Overhead Efficiency
Variancer (VMOEV) = SR(AH-SH)
(SOVR xAH) –(SVORxSH) = (SH-AH)SVOR
McGraw-Hill/Irwin
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2. Fixed Manufacturing Ovrhead Variance (FMOV)
Dicari dulu POR = Taksiran Jumlah FOH per
periode/ Taksiran Machie hours(MH) atau unit
yg diproduksi per periode.
Contoh :
Untuk bulan Oktober 2006 Biaya FOH tetap ditaksir
$ 381.000, jumlah unit diprodusi maka biaya per unit
(POR) = $ 31.000/1.000 = $ 381/unit. Dalam perhitungan
Flexible Budget harus dapat ditntukan taksiran
Demoninatory Actvity yaitu tingkat ketigatan aktivitas
pada jumlah jam mesin/JTKL tertentu diatnara relevan
range untuk periode masa depan yang ditetapkan pada
awal tahun anggaran.Varians pada FOH teap, ada dua
varians.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
3). Fixed Manufacturuing overhead Volume Variance (FMOVV) :
Volume Variance= POR x ( DMH - SMH) atau
Fixed portion of the POR x( DM –SH allowed).
DM=Denomitory activity. Penggunaan Denomitory aktivity
ada 3 hal diperhatikan :
a. Jika Denominator activity sama dengan jam standar
allowed pada priode ini maka Volume Varians nihil.
b. JIka denominator activity lebih besar dari jam standard
allowed dalam priode ini kemudian timbul varians
volume UF, berarti penggunaan di bawah fasilitas yang
tersedia.
c. Jika denominator activity lebih kecil dari jam standar
allowed dalam priode ini, kemudian timbul varians volume UF,
berarti penggunaan yang tinggi terhadap fasilitas yang
tersedia dibandingkan yang yang telah direncanakan.
4).Fixed Manufactruing Overhead Budget variance atau
Budget Variance= Actual Fixed FOH cost- Budgeted Fixed
FOH Cost.
McGraw-Hill/Irwin
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1.Contoh .
Kohn Mountain menggunakan Flexible Budget untuk
operasi perusahaannya dan mempunyai data sebagian
dari relevant range 5.000 unit – 10.000 unit.
Biaya
5.000unit
10.000 unit.
Depresiasi
$ 3.000
$ 3.000
Power
10.000
20.000
Bahan tak langsung
9.000
10.000
Pemeliharaan
8.500
10.000
Biaya lainnya
. 5.000
7.000
Jumlah
$ 35.500
$ 50.000
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Diminta :
a. Susunlah Flexible Budget dalam
kompenen biaya .
b. Buatlah Flexible budget dengan
kenaikan 1.250 unit.
c. Grafik Flexible budget.
d. Hitunglah “semi variabel cost “ pada
tingkat aktivitas 7.500 unit.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Jawab :
1. Flexible budget dengan analisis kompenen.
Biaya tetap adalah depresiasi = $ 3.000.
2 -Power : maksimum = $ 20.000 = 10.000 unit
minimum = $ 10.000 = 5.000 unit
High and low
$ 10.000 = 5.000 unit
Elemen variabel $ 10.000/5.000 = $ 2.
Elemen tetap :maksimum =10.000x$2 = $
20.000, sama dengan biayanya $20.000,Elemen
tetap= 0
McGraw-Hill/Irwin
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3. Bahan tidak langsung dengan hal yang sama:
Elemen variabel = Mak 10.000 unit = $ 10.000
Min 5.000 unit = 9.000
5.000 unit = $ 1.000
Elemen variabel= $ 1.000/5000 = $ 0,20 unit
Elemen tetap = Mak: 10.000
= $ 10.000
10.000x0,20 = . 2.000
Elemen tetap
$ 8.000
McGraw-Hill/Irwin
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4. Pemeliharaan : Mak:10.000 unit = $ 10.000
5.000 unit =
8.500
5.000 unit
$ 1.500
Elemen variabel = $1.500/5000 = $0,30.unit
Elemen tetap Mak =10.000.
= $ 10.000
10.000x 0,30= . 3.000
Elemen tetap
$ 7.000
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
5. Biaya lainnya: Mak :10.000
Min 5.000
=$ 7.000
= 5.000
5.000
= $ 2.000
Element variabel = $ 2.000/5.000 = $ 0,40 unit
Elemen tetap = $ 7.000 – ( $0,40 x 10.000)
= $ 3.000
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Budget Flexible dengan kompenen (bentuk High
and low) adalah berikut ini :
Relevan Range 5.000 – 10.000 unit
.
Biaya Tetap
Biaya Variabel
Depresiasi
3.000
0
Power
0
$ 2 /unit
Bahan tak langsung 8.000
0,20 /unit
Pemeliharaan
7.000
0,30 /unit
Biaya lainnya
. 3.000
0,40 /unit
Jumlah
$ 21.000
$2.90 /unit
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Dari hasil diatas dapat dihitung pada tingkat relevant range
tertentu dengan rumus Y = a + bx atau $ 21.000+2,90X
Biaya
Depresiasi
Power
Bahan tak langs
Pemeliharaan
Biaya lainnya
Jumlah
McGraw-Hill/Irwin
Relevant range
( unit)
5.000
6.250. 7.500 8.750 . 10.000
3.000
3.000 3.000 3.000. 3.000
10.000 12.500 15.000 17.500
20.000
9.000
9.250 9.500 9.750
10. 000
8.500
8.875 9.250 9.625
10.000
5.000
5.500 6.000 6.500
7.000
35.500 39.125 42.750 46.375 50.000
© The McGraw-Hill Companies, Inc., 2003
c. Grafik Flexible Budget, hampir sama dengan grafik Fixed Cost
dan Variabel cost.
d. Menghitung Biaya Semi Variabel pada tingkat 7.500 unit
Perguanakan Formula Y = a + bX

Bahan tak langsung = $ 8.000 + $0,20 X

Pemeliharaan
=
7.000 + $0,30 X

Biaya lainnya
=
3.000 + $0,40X
Jumlah Y = $ 18.000+ $0,90X
Tingat relevant range 7.500, maka biaya semi variabelnya
adalah $ 18.000 +( $0,90 x 7.500) = $ 24.750.
Depresiasi dan Power tidak dihitung karena kedua bersifat
tetap dan variabel secara total.
Bahan lainnya dapat dilihat dari Power Point berikut ini.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Static Budgets and
Performance Reports
Static budgets are
prepared for a single,
planned level of
activity.
Performance
evaluation is difficult
when actual activity
differs from the
planned level of
activity.
McGraw-Hill/Irwin
Hmm! Comparing
static budgets with
actual costs is like
comparing apples
and oranges.
Let’s look at CheeseCo.
© The McGraw-Hill Companies, Inc., 2003
Static Budgets and
Performance Reports
CheeseCo
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Static Budgets and
Performance Reports
CheeseCo
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Static Budgets and
Performance Reports
CheeseCo
U = Unfavorable variance
CheeseCo was unable to achieve
the budgeted level of activity.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Static Budgets and
Performance Reports
CheeseCo
F = Favorable variance that occurs when
actual costs are less than budgeted costs.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Static Budgets and
Performance Reports
CheeseCo
Since cost variances are favorable, have
we done a good job controlling costs?
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Flexible Budgets
Show revenues and expenses
that should have occurred at the
actual level of activity.
May be prepared for any activity
level in the relevant range.
Reveal variances due to good cost
control or lack of cost control.
Improve performance evaluation.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Preparing a Flexible Budget
To
a budget we need to know that:

Total variable costs change
in direct proportion to
changes in activity.

Total fixed costs remain
unchanged within the
relevant range.
McGraw-Hill/Irwin
Fixed
© The McGraw-Hill Companies, Inc., 2003
Preparing a Flexible Budget
CheeseCo
Cost
Formula
Per Hour
Total
Fixed
Cost
Machine hours
Variable costs
Indirect labor
Indirect material
Power
Total variable cost
Fixed costs
Depreciation
Insurance
Total fixed cost
Total overhead costs
McGraw-Hill/Irwin
Flexible Budgets
8,000
10,000
Hours
Hours
8,000
$
4.00
3.00
0.50
7.50
12,000
Hours
10,000
12,000
Variable costs are expressed as
$ 32,000 amount per hour.
a constant
24,000
$40,000
4,000÷ 10,000 hours
$ 60,000
$4.00 per hour.
$12,000
2,000
is
Fixed costs are
expressed as a
total amount.
© The McGraw-Hill Companies, Inc., 2003
Preparing a Flexible Budget
CheeseCo
Cost
Formula
Per Hour
Total
Fixed
Cost
Machine hours
Variable costs
Indirect labor
Indirect material
Power
Total variable cost
8,000
$
Fixed costs
Depreciation $4.00
Insurance
Total fixed cost
Total overhead costs
McGraw-Hill/Irwin
Flexible Budgets
8,000
10,000
Hours
Hours
4.00
3.00
0.50
7.50
10,000
12,000
Hours
12,000
$ 32,000
24,000
4,000
$ 60,000
per hour
× 8,000 hours = $32,000
$12,000
2,000
© The McGraw-Hill Companies, Inc., 2003
Preparing a Flexible Budget
CheeseCo
Cost
Formula
Per Hour
Total
Fixed
Cost
Machine hours
Variable costs
Indirect labor
Indirect material
Power
Total variable cost
Fixed costs
Depreciation
Insurance
Total fixed cost
Total overhead costs
McGraw-Hill/Irwin
Flexible Budgets
8,000
10,000
Hours
Hours
8,000
$
4.00
3.00
0.50
7.50
10,000
12,000
Hours
12,000
$ 32,000
24,000
4,000
$ 60,000
$12,000
2,000
$ 12,000
2,000
$ 14,000
$ 74,000
?
© The McGraw-Hill Companies, Inc., 2003
Preparing a Flexible Budget
CheeseCo
Cost
Formula
Per Hour
Total
Fixed
Cost
Machine hours
Variable costs
Indirect labor
Indirect material
Power
Total variable cost
Fixed costs
Depreciation
Insurance
Total fixed cost
Total overhead costs
McGraw-Hill/Irwin
Flexible Budgets
8,000
10,000
Hours
Hours
8,000
10,000
4.00
$ 32,000
3.00 fixed costs
24,000
Total
0.50not change 4,000
do
in
$ 7.50
$ 60,000
$ 40,000
30,000
5,000
$ 75,000
$12,000
2,000
$ 12,000
2,000
$ 14,000
$ 89,000
the relevant range.
$ 12,000
2,000
$ 14,000
$ 74,000
12,000
Hours
12,000
© The McGraw-Hill Companies, Inc., 2003
Preparing a Flexible Budget
CheeseCo
Cost
Formula
Per Hour
Total
Fixed
Cost
Machine hours
Variable costs
Indirect labor
Indirect material
Power
Total variable cost
Fixed costs
Depreciation
Insurance
Total fixed cost
Total overhead costs
McGraw-Hill/Irwin
$
4.00
3.00
0.50
7.50
$12,000
2,000
Flexible Budgets
8,000
10,000
Hours
Hours
12,000
Hours
8,000
10,000
12,000
$ 32,000
24,000
4,000
$ 60,000
$ 40,000
30,000
5,000
$ 75,000
$ 48,000
36,000
6,000
$ 90,000
$ 12,000
2,000
$ 14,000
$ 74,000
$ 12,000
2,000
$ 14,000
$ 89,000
$ 12,000
2,000
$ 14,000
$ 104,000
© The McGraw-Hill Companies, Inc., 2003
Flexible Budget
Performance Report
CheeseCo
Flexible budget is
prepared for the Cost
Total
Formula
Fixed
Flexible
same activity level
Per Hour
Costs
Budget
(8,000 hours) as
Machine
hoursachieved.
8,000
actually
Variable costs
Indirect labor
Indirect material
Power
Total variable costs
Fixed Expenses
Depreciation
Insurance
Total fixed costs
Total overhead costs
McGraw-Hill/Irwin
$
$
4.00
3.00
0.50
7.50
Actual
Results
8,000
Variances
0
$ 34,000
25,500
3,800
$ 63,300
$ 12,000
2,000
$ 12,000
2,050
$ 14,050
$ 77,350
© The McGraw-Hill Companies, Inc., 2003
Flexible Budget
Performance Report
CheeseCo
Cost
Formula
Per Hour
Total
Fixed
Costs
Machine hours
Variable costs
Indirect labor
Indirect material
Power
Total variable costs
Fixed Expenses
Depreciation
Insurance
Total fixed costs
Total overhead costs
McGraw-Hill/Irwin
$
$
4.00
3.00
0.50
7.50
$ 12,000
2,000
Flexible
Budget
Actual
Results
8,000
8,000
$ 32,000
24,000
4,000
$ 60,000
$ 34,000
Variances
0
$ 2,000 U
$ 12,000
2,000
$ 14,000
$ 74,000
© The McGraw-Hill Companies, Inc., 2003
Flexible Budget
Performance Report
CheeseCo
Cost
Formula
Per Hour
Total
Fixed
Costs
Machine hours
Variable costs
Indirect labor
Indirect material
Power
Total variable costs
Fixed Expenses
Depreciation
Insurance
Total fixed costs
Total overhead costs
McGraw-Hill/Irwin
$
$
4.00
3.00
0.50
7.50
$ 12,000
2,000
Flexible
Budget
Actual
Results
8,000
8,000
$ 32,000
24,000
4,000
$ 60,000
$ 34,000
25,500
Variances
0
$ 2,000 U
1,500 U
$ 12,000
2,000
$ 14,000
$ 74,000
© The McGraw-Hill Companies, Inc., 2003
Flexible Budget
Performance Report
CheeseCo
Cost
Formula
Per Hour
Total
Fixed
Costs
Machine hours
Variable costs
Indirect labor
Indirect material
Power
Total variable costs
Fixed Expenses
Depreciation
Insurance
Total fixed costs
Total overhead costs
McGraw-Hill/Irwin
$
$
4.00
3.00
0.50
7.50
$ 12,000
2,000
Flexible
Budget
Actual
Results
8,000
8,000
$ 32,000
24,000
4,000
$ 60,000
$ 34,000
25,500
3,800
$ 63,300
$ 2,000 U
1,500 U
200 F
$ 3,300 U
$ 12,000
2,000
$ 14,000
$ 74,000
$ 12,000
2,050
$ 14,050
$ 77,350
0
50 U
50 U
$ 3,350 U
Variances
0
© The McGraw-Hill Companies, Inc., 2003
Static Budgets and Performance
How much of the $11,650 is due to activity
and how much is due to cost control?
Static
Budget
Machine hours
Variable costs
Ind irect labor
Indirect materials
Power
Fixed costs
Depreciation
Insurance
Total overhead costs
McGraw-Hill/Irwin
Actual
Results
Variances
10,000
8,000
2,000 U
$ 40,000
30,000
5,000
$ 34,000
25,500
3,800
$6,000 F
4,500 F
1,200 F
12,000
2,000
12,000
2,050
0
50 U
$ 89,000
$ 77,350
$11,650 F
© The McGraw-Hill Companies, Inc., 2003
Flexible Budget
Performance Report
Overhead Variance Analysis
Static
Overhead
Budget at
10,000 Hours
$
89,000
Let’s place
the flexible
budget for
8,000 hours
here.
Actual
Overhead
at
8,000 Hours
$
77,350
Difference between original static budget
and actual overhead = $11,650 F.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Flexible Budget
Performance Report
Overhead Variance Analysis
Static
Overhead
Budget at
10,000 Hours
$
89,000
Flexible
Overhead
Budget at
8,000 Hours
$
Activity
This $15,000F variance is
due to lower activity.
McGraw-Hill/Irwin
74,000
Actual
Overhead
at
8,000 Hours
$
77,350
Cost control
This $3,350U flexible
budget variance is due
to poor cost control.
© The McGraw-Hill Companies, Inc., 2003
Flexible Budget
Performance Report
There are two primary
reasons for unfavorable
variable overhead variances:
What causes
the cost
control variance?
McGraw-Hill/Irwin
1. Spending too much for
resources.
2. Using the resources
inefficiently.
© The McGraw-Hill Companies, Inc., 2003
Overhead Rates and
Overhead Analysis
Recall that overhead costs are assigned to
products and services using a
predetermined overhead rate (POHR):
Assigned Overhead = POHR × Standard Activity
POHR
McGraw-Hill/Irwin
=
Overhead from the
flexible budget for the
denominator level of activity
Denominator level of activity
© The McGraw-Hill Companies, Inc., 2003
Overhead Rates and
Overhead Analysis – Example
ColaCo prepared this
Machine
Hours
2,000
4,000
Total
Variable
Overhead
$
budget for overhead:
Variable
Overhead
Rate
4,000
?
8,000
?
Total
Fixed
Overhead
$
Fixed
Overhead
Rate
9,000
?
9,000
?
Let’s calculate overhead rates.
ColaCo applies overhead based
on machine hour activity.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Overhead Rates and
Overhead Analysis – Example
ColaCo prepared this
Machine
Hours
2,000
4,000
budget for overhead:
Total
Variable
Overhead
Variable
Overhead
Rate
Total
Fixed
Overhead
$
$
$
4,000
8,000
2.00
2.00
Fixed
Overhead
Rate
9,000
?
9,000
?
Rate = Total Variable Overhead ÷ Machine Hours
This rate is constant at all levels of activity.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Overhead Rates and
Overhead Analysis – Example
ColaCo prepared this
Machine
Hours
2,000
4,000
budget for overhead:
Total
Variable
Overhead
Variable
Overhead
Rate
Total
Fixed
Overhead
Fixed
Overhead
Rate
$
$
$
$
4,000
8,000
2.00
2.00
9,000
9,000
4.50
2.25
Rate = Total Fixed Overhead ÷ Machine Hours
This rate decreases when activity increases.
McGraw-Hill/Irwin
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Overhead Rates and
Overhead Analysis – Example
ColaCo prepared this
Machine
Hours
2,000
4,000
budget for overhead:
Total
Variable
Overhead
Variable
Overhead
Rate
Total
Fixed
Overhead
Fixed
Overhead
Rate
$
$
$
$
4,000
8,000
2.00
2.00
9,000
9,000
4.50
2.25
The total POHR is the sum of
the fixed and variable rates
for a given activity level.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Variable Overhead Variances
– Example
ColaCo’s actual production for the period required
3,200 standard machine hours. Actual variable
overhead incurred for the period was $6,740.
Actual machine hours worked were 3,300.
Compute the variable overhead spending and
efficiency variances.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Variable Overhead Variances
Actual
Variable
Overhead
Incurred
Flexible Budget
for Variable
Overhead at
Actual Hours
AH × AR
AH × SR
Spending
Variance
Flexible Budget
for Variable
Overhead at
Standard Hours
SH × SR
Efficiency
Variance
Spending variance = AH(AR - SR)
Efficiency variance = SR(AH - SH)
McGraw-Hill/Irwin
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Variable Overhead Variances
– Example
Actual
Variable
Overhead
Incurred
Flexible Budget
for Variable
Overhead at
Actual Hours
Flexible Budget
for Variable
Overhead at
Standard Hours
3,300 hours
×
$2.00 per hour
3,200 hours
×
$2.00 per hour
$6,600
$6,400
$6,740
Spending variance
$140 unfavorable
Efficiency variance
$200 unfavorable
$340 unfavorable flexible budget total variance
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Variable Overhead Variances
– Example
Actual
Variable
Overhead
Incurred
Flexible Budget
for Variable
Overhead at
Actual Hours
2,050 hours
×
$5 per hour
$10,950
Spending variance
$700 unfavorable
$10,250
Flexible Budget
for Variable
Overhead at
Standard Hours
2,100 hours
×
$5 per hour
$10,500
Efficiency variance
$250 favorable
$450 unfavorable flexible budget total variance
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Variable Overhead Variances
– A Closer Look
Spending Variance
Results from paying more
or less than expected for
overhead items and from
excessive usage of
overhead items.
McGraw-Hill/Irwin
Efficiency Variance
Controlled by
managing the
overhead cost driver.
© The McGraw-Hill Companies, Inc., 2003
Overhead Rates and
Overhead Analysis – Example
ColaCo prepared this
Machine
Hours
2,000
4,000
budget for overhead:
Total
Variable
Overhead
Variable
Overhead
Rate
Total
Fixed
Overhead
Fixed
Overhead
Rate
$
$
$
$
4,000
8,000
2.00
2.00
9,000
9,000
4.50
2.25
What is ColaCo’s fixed overhead rate for an
estimated activity of 3,000 machine hours?
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Overhead Rates and
Overhead Analysis – Example
ColaCo prepared this
Machine
Hours
2,000
4,000
budget for overhead:
Total
Variable
Overhead
Variable
Overhead
Rate
Total
Fixed
Overhead
Fixed
Overhead
Rate
$
$
$
$
4,000
8,000
2.00
2.00
9,000
9,000
4.50
2.25
Fixed Overhead Rate
FR = $9,000 ÷ 3,000 machine hours
FR = $3.00 per machine hour
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Fixed Overhead Variances –
Example
ColaCo’s actual production required 3,200
standard machine hours. Actual fixed overhead
was $8,450.
Compute the fixed overhead budget and volume
variances.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Fixed Overhead Variances
Actual Fixed
Overhead
Incurred
Budget
Variance
Fixed
Overhead
Budget
Fixed
Overhead
Applied
SH × FR
Volume
Variance
FR = Standard Fixed Overhead Rate
SH = Standard Hours Allowed
McGraw-Hill/Irwin
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Fixed Overhead Variances –
Example
Actual Fixed
Overhead
Incurred
Fixed
Overhead
Budget
Fixed
Overhead
Applied
SH × FR
3,200 hours
×
$3.00 per hour
$8,450
$9,000
$9,600
Budget variance
$550 favorable
McGraw-Hill/Irwin
Volume variance
$600 favorable
© The McGraw-Hill Companies, Inc., 2003
Quick Check 
Actual Fixed
Overhead
Incurred
Fixed
Overhead
Budget
$14,800
Budget variance
$350 unfavorable
McGraw-Hill/Irwin
$14,450
Fixed
Overhead
Applied
SH × FR
2,100 hours
×
$7.00 per hour
$14,700
Volume variance
$250 favorable
© The McGraw-Hill Companies, Inc., 2003
Fixed Overhead Variances –
A Closer Look
Budget Variance
Volume Variance
Results from paying more
or less than expected for
overhead items.
Results from operating
at an activity level
different from the
denominator activity.
McGraw-Hill/Irwin
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Fixed Overhead Variances
Cost
$9,000 budgeted fixed OH
Volume
McGraw-Hill/Irwin
3,000 Hours
Expected
Activity
© The McGraw-Hill Companies, Inc., 2003
Fixed Overhead Variances
Cost
$9,000 budgeted fixed OH
{
$550
Favorable
Budget
Variance
$8,450 actual fixed OH
Volume
McGraw-Hill/Irwin
3,000 Hours
Expected
Activity
© The McGraw-Hill Companies, Inc., 2003
Fixed Overhead Variances
Cost
$600
Favorable
Volume
Variance
{
$550 {
Favorable
3,200 machine hours × $3.00 fixed overhead rate
$9,600 applied fixed OH
$9,000 budgeted fixed OH
$8,450 actual fixed OH
Budget
Variance
McGraw-Hill/Irwin
3,000 Hours
Expected
Activity
Volume
3,200
Standard
Hours
© The McGraw-Hill Companies, Inc., 2003
Volume Variance – A Closer
Look
Volume
Variance
Results when standard hours
allowed for actual output differs
from the denominator activity.
Unfavorable
when standard hours
< denominator hours
McGraw-Hill/Irwin
Favorable
when standard hours
> denominator hours
© The McGraw-Hill Companies, Inc., 2003
Overhead Variances and Underor Overapplied Overhead Cost
In a standard
cost system:
Unfavorable
variances are equivalent
to underapplied overhead.
Favorable
variances are equivalent
to overapplied overhead.
The sum of the overhead variances
equals the under- or overapplied
overhead cost for a period.
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
CONTOH LAINNYA DARI FLEXIBLE BUDHET
Data for manufacturing Overhead of Tiagaroda Company are given below.
lexible Budget at various level of activity (hours)
Cost Formula
Direct Labor
Activity ( Hours)
.
Overhaed Cost
Per direct labor hours
10.000 12.000 14.000
16.000
Variable Overhead cost
Utilitties
$ 3,00
30.000 36.000 42.000
48.000
Indirect labor
1,50
15.000 18.000 21.000
24.000
Suplies
. 2,50.
25.000 30.000 35.000
40.000
Total Variavel overhead cost $ 7,00
70.000 84.000 98.000 112.000
Fixed Overhead cost
Depreciation
18.000 18.000 18.000
18.000
Insurance
33.000 33.000 33.000
33.000
Supervisor
19.000 19.000 19.000 19.000
Total Fixed Overhead Cost
70.000 70.000 70.000 70..000
Total Overhead Cost
140.000 154.000 168.000 182.000
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Four hours of direct labor time are required per unit product. The Tigaroda Coy
has set demonitory activity for coming priod at 14..000 direct labor (DLHs)
or 3.500 units.
Assumse the following actual results for the priod.
- Number of units produced
3.625 units.
- Standard direct labors (DLHs) allowed
14.500 jam
- Actual direct labor hours
14.800jam
- Actual fixed overhead cost
$ 72.000
- Actual variable overhead cost
$ 104.000
Required:
a. Compute predetermined over rate (POR) an break it down into “ variable and
fixed cost
elements”
b. Analyze the $................? Under or over applied Overhead.
c. Compute the four variance of Overhead.
JAWAB:
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
POR tingkat denomitory activity 14.000 DLH . POR
dalam DLHs =$ 168.000/14.000 = $ 12 DLHs
Elemen variabel = 98.000/14.000 = $ 7 DLH, jadi
elemen tetap $ 12 - $ 7 = $ 5 DLH
B.Analisis under or over applied dari overhead.
Total Overhead aktual = $ 72.000 + $ 104.000
= $ 176.000
Standard DLH 14.500 x $12dlh = $ 174.000
Overhead under applied
$
2.000
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Four FOH Variance.
Overhead Fixed variance.
1.Budget variance= Actual fixed FOH
Flexible budget $ 72.000 –(Dominotory
axtivity x elements fixed) =
$ 72.000- ($ 14.000 x $5) = $ 2.000 UF
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
2) Volume variance: = (Fixed portion of the
PORx Donomintory activity)- Standard Hours.
= $ 5( 14.000 - 14.500 ) = $ 2.500 F.
FOH variable variance.
3). Spending variance = (AR –SR) AH = $
104. 000 – ( 14.800 x 7)
= 104.000.000 – 106.000= $ 2.000 UF
4). Eficiency = SR(AH-SH) = $7 ( 14.800
- 14.500) = $ 2.100 UF
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
3. Rekapitulasi Varians:
Fixed FOH variance.
- Budget variance
- Volume variance
Variable FOH variance.
- Spending variance
- Efficeincy variance
Total Variance
McGraw-Hill/Irwin
$ 2.000 UF
2.500 F
2.000 UF
2.100 UF
$ 3.600 UF
© The McGraw-Hill Companies, Inc., 2003
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