(1)
Pre determined OH rate | ||||
variable overhead cost | 11$ | [275000/25000standard hours] | ||
fixed overhead costs | 2$ | [50000/25000] | ||
total overhead costs | 13$ | |||
(2)
standard DL hours | overhead applied | actual results | variance | Fav/Unfav | ||||||
variable overhead cost | 22000 | 242000[22000*11$] | ||||||||
fixed overhead costs | 44000[22000*2$] | |||||||||
total overhead costs | 286000 | 305000 | 19000[286000-305000] | unfavorable | ||||||
As the Actual result is higher than flexible budget for 22000direct labor hours the variance is unfavorable. | ||||||||||
World Company expects to operate at 80% of its productive capacity of 50.000 units per month....
World Company expects to operate at 90% of its productive capacity of 30,000 units per month. At this planned level, the company expects to use 10,800 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.400 direct labor hours per unit. At the 90% capacity level, the total budgeted cost includes $21,600 fixed overhead cost and $194,400 variable overhead cost. In the current month, the company incurred $120,700 actual overhead and 6,380 actual...
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World Company expects to operate at 60% of its productive capacity of 19,000 units per month. At this planned level, the company expects to use 4,845 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.425 direct labor hour per unit. At the 60% capacity level, the total budgeted cost includes $19,380 fixed overhead cost and $92,055 variable overhead cost. In the current month, the company incurred $87,020 actual overhead and 875 actual...
World Company expects to operate at 70% of its productive capacity of 23,000 units per month. At this planned level, the company expects to use 12.075 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.750 direct labor hours per unit. At the 70% capacity level, the total budgeted cost includes $48,300 fixed overhead cost and $144.900 variable overhead cost. In the current month, the company incurred $197,750 actual overhead and 11,625 actual...
World Company expects to operate at 70% of its productive capacity of 23,000 units per month. At this planned level, the company expects to use 12,075 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.750 direct labor hours per unit. At the 70% capacity level, the total budgeted cost includes $48,300 fixed overhead cost and $144,900 variable overhead cost. In the current month, the company incurred $197,750 actual overhead and 11,625 actual...
World Company expects to operate at 70% of its productive capacity of 20,000 units per month. At this planned level, the company expects to use 11,550 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.825 direct labor hour per unit. At the 70% capacity level, the total budgeted cost includes $23,100 fixed overhead cost and $138,600 variable overhead cost. In the current month, the company incurred $135,860 actual overhead and 7180 actual...
World Company expects to operate at 70% of its productive capacity of 20,000 units per month. At this planned level, the company expects to use 11,550 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.825 direct labor hour per unit. At the 70% capacity level, the total budgeted cost includes $23,100 fixed overhead cost and $138,600 variable overhead cost. In the current month, the company incurred $135,860 actual overhead and 7180 actual...
World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use 25,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.625 direct labor hours per unit. At the 80% capacity level, the total budgeted cost includes $50,000 fixed overhead cost and $275,000 variable overhead cost. In the current month, the company incurred $305,000 actual overhead and 22,000 actual...
World Company expects to operate at 60% of its productive capacity of 28,000 units per month. At this planned level, the company expects to use 7,560 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.450 direct labor hour per unit. At the 60% capacity level, the total budgeted cost includes $22,680 fixed overhead cost and $60,480 variable overhead cost. In the current month, the company incurred $63,920 actual overhead and 7,130 actual...
World Company expects to operate at 80% of its productive capacity of 70,000 units per month. At this planned level, the company expects to use 25,200 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.450 direct labor hours per unit. At the 80% capacity level, the total budgeted cost includes $57,960 fixed overhead cost and $322,560 variable overhead cost. In the current month, the company incurred $386,000 actual overhead and 22,200 actual...