13-48 Overhead Variances Study Appendix 13. Consider the following data for the Rivera Company:

13-48 Overhead VariancesStudy Appendix 13. Consider the following data for the Rivera Company:Factory OverheadFixed VariableActual incurred $14,200 $13,300Budget for standard hours allowedfor output achieved 12,500 11,000Applied 11,600 11,000Budget for actual hours of input 12,500 11,400From the above information, fill in the blanks below. Be sure to mark your variances F for favorableand U for unfavorable.a. Flexible-budget variance $______ Fixed $______Variable $______b. Production-volume variance $______ Fixed $______Variable $______c. Spending variance $______ Fixed $______Variable $______d. Efficiency variance $______ Fixed $______Variable $______Study Appendix 13. Consider the following data regarding factory overhead:Variable FixedBudget for actual hours of input $45,000 $70,000Applied 41,000 64,800Budget for standard hours allowedfor actual output achieved ? ?Actual incurred 48,500 68,500Using the above data, fill in the following blanks with the variance amounts. Use F for favorable or Ufor unfavorable for each variance.Total Overhead Variable Fixed1. Spending variance ______ ______ ______2. Efficiency variance ______ ______ ______3. Production-volume variance ______ ______ ______4. Flexible-budget variance ______ ______ ______5. Underapplied overhead ______ ______ ______12-59 Allocating Costs Using Direct and Step-Down MethodsGoal: Create an Excel spreadsheet to allocate costs using the direct method and the stepdownmethod. Use the results to answer questions about your findings.Scenario: Antonio Cleaning has asked you to help them determine the best method forallocating costs from their service departments to their producing departments. Additionalbackground information for your spreadsheet appears in Fundamental Assignment Material12-B2. Exhibit 12-4 on page 532 illustrates the types of calculations that are used forallocating costs using the direct method and the step-down method.

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