Solution1:
Predetermined overhead rate for variable overhead = $144,900 / 12075 = $12 per hour
Predetermined overhead rate for fixed overhead = $48,300 / 12075 = $ 4 per hour
Predetermined overhead rate for total overhead cost = $12 + $4 = $16 per hour
Solution 2:
Computation of Total Overhead Variance - World company | |||||
Particulars | Standard DL hours for actual production | Overhead cost applied | Acutal overhead incurred | Variance | Favorable / Unfavorable |
Variable Overhead Cost | 10425 | $125,100.00 | |||
Fixed Overhead Cost | 10425 | $41,700.00 | |||
Total Overhead Cost | $166,800.00 | $197,750.00 | $30,950.00 | Unfavorable |
World Company expects to operate at 70% of its productive capacity of 23,000 units per month....
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 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...
World Company expects to operate at 60% of its productive
capacity of 32,000 units per month. At this planned level, the
company expects to use 12,000 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 60% capacity
level, the total budgeted cost includes $36,000 fixed overhead cost
and $120,000 variable overhead cost. In the current month, the
company incurred $116,000 actual overhead and 5,760 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 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 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 based on direct labor hours. At the 80% capacity level the total budgeted cost includes $50,000 fixed overhead cost and S275.000 variable overhead cost. In the current month, the company incurred $305,000 actual overhead and 22,000 actual labor hours...
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 60% of its productive capacity of 32,000 units per month. At this planned level, the company expects to use 12,000 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 60% capacity level, the total budgeted cost includes $36,000 fixed overhead cost and $120,000 variable overhead cost. In the current month, the company incurred $116,000 actual overhead and 5,760 actual...
HOW DO I CALCULATE?
World Company expects to operate at 60% of its productive capacity of 32,000 units per month. At this planned level, the company expects to use 12,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.625 direct labor hour per unit. At the 60% capacity level, the total budgeted cost includes $36,000 fixed overhead cost and $120,000 variable overhead cost. In the current month, the company incurred $116,000 actual...