Question

x Data Table Actual Results 966 Flexible Budget Static Budget 885 Allocated Amount 1,449 1,932 1,770 Output units Machine-hours Machine-hours per output unit Variable MOH costs Variable MOH costs per machine-hour Fixed MOH costs Fixed MOH costs per machine-hour 1.50 $ 68,103 $ 85,008 $ $ $ 350,235 $ 341,610 $ 2.00 77,880 $ 85,008 44.00 $ 376,400 193.00 Print Done

Answer 1

Requirement 1

Variable overhead calculations

	Actual Costs Incurred	Actual Inputs X Budgeted rate	Flexible Budget	Allocated Overhead
Variable MOH	68,103.00	63,756.00	85,008.00	85,008.00

Fixed overhead calculation

	Actual Costs Incurred	Same Budgeted Lump sum regardless of Output level	Flexible Budget	Allocated Overhead
Fixed MOH	3,50,235.00	3,41,610.00	3,41,610.00	3,76,400.00

4 - Variance analysis

4 - Variance analaysis	Spending Variance	Efficiency Variance	Production - Volume Variance
Variable MOH	-4,347.00	-14,124.00	3,564.00
Fixed MOH	8,625.00	61,953.00	-

Variable MOH Working

Variance label	Spending Variance formula
	Actual hours worked x (Actual overhead rate - standard overhead rate)
	Actual hours worked	1449
	standard overhead rate	44.00
U	Actual overhead rate	47.00
	Efficiency Variance formula
	Standard overhead rate x (Actual hours - Standard hours)
	standard overhead rate	44
F	Actual hours	1449
	Standard hours	1770
	Production - Volume Variance
	(Actual units produced - Budgeted units produced) x Budgeted overhead rate
	Actual units produced	966
F	Budgeted units produced	885
	Budgeted overhead rate	44

Fixed MOH

Variance lable	Spending Variance formula
	Actual Fixed Overheads-Budgeted Fixed Overheads
	Actual Fixed Overheads	350235
U	Budgeted Fixed Overheads(1770*193)	341610
	Efficiency Variance formula
	(Standard direct labor hours allowed-actual direct labor hours) X standard variable overhead rate
	standard direct labor hours allowed	1770
	actual direct labor hours	1449
F	standard variable overhead rate	193
	Production - Volume Variance
	Applied Fixed Overhead – Budgeted Fixed Overhead
N	Applied Fixed Overhead	341610
	Budgeted Fixed Overhead((1770*193))	341610
	Applied Fixed Overhead formula
	Standard Fixed Overhead Rate × Standard Hours Allowed	341610
	Standard Fixed Overhead Rate	193
	Standard Hours Allowed	1770

Record the actual variable manufacturing overhead
Date	Account	Debit	Credit
31-12-2017	Dr. Variable MOH account	68,103.00
31-12-2017	Cr. Account payable		68,103.00
Record the variable manufacturing overhead allocated
31-12-2017	Dr. Variable MOH account	85008
31-12-2017	Cr. Variable MOH allocation account		85008
Record the variable manufacturing overhead variance for the period
31-12-2017	Dr. Variable MOH account	4347
31-12-2017	Cr. Variable MOH variance account		4347
Record the actual Fixed manufacturing overhead
31-12-2017	Dr. fixed MOH account	350235
31-12-2017	Cr. Account payable		350235
Record the Fixedmanufacturing overhead allocated
31-12-2017	Dr. Fixed MOH account	376400
31-12-2017	Cr. Fixed MOH allocation account		376400
Record the variable manufacturing overhead variance for the period
31-12-2017	Dr. Fixed MOH account	8625
31-12-2017	Cr. Fixed MOH variance account		8625

Requirement 2

Date	Account	Debit	Credit
31-12-2017	Dr.Variance account	8,625.00
31-12-2017	Dr.Variance account	4,347.00
31-12-2017	Cr.Cost of sold account		12,972.00