calga calgary ry paper paper comp compan any y produc produces es paper paper for for photoc photocopi opiers ers.. The compa compa capacity of 180000 direct labor hours as follows: standard costs per unit(one box of paper): variable overhead (hours !"# per hour) $xed overhead ( hours !"% per hour) total during during april& april& '0000 units were schedu scheduled led for producti production: on: however however onl actua actuall direc directt labor labor cost cost incu incurre rred d was was " 1%%0 1%%00 0 for for 1%00 1%000 0 actua actuall ho ho actua actuall overh overhead ead totale totaled d " 1#1%0 1#1%00 0 of which which " %11%0 %11%00 0 was was varia variable ble a re+uired: 1. variable overhead spending variance 2. variable overhead efciency variance 3. xed overhead budget variance 4. xed overhead volume variance answer:
=actual variable overhead cost actual hours actual variable overhead " actual rate (A#$! " 3)1' per hour " %11%00
actual variable overhead rate (-/)
actual hours (A! 1%&''' hours
1%&'' un*a variable overhead sp
$xed ov overhead budget a =1+'''' hours x & per hour
budgeted $xed overhead (1!
(2!
actual xed overhead
budgeted xed overhead
" 80000
" '00000
4'''' *avorable
$xed overhead budget variance
y has developed standard overhead rates based on a monthly
10 1
y 80000 units were actually produced. The following data relate rs of wor* d " 80000 was $xed
variable overhead spending and e,cie = &11&'' 1%&''' actual hours (A! 1%&''' hours
" #&10
" " " '%000
orable nding variance
standard rate (,#$! 3 per hour
1&''' u variable overhead
d volume variances " '00000 (3! xed overhead applied to -or in process standard allo-ed hours 1%'''' hours
1''''' *avorable
" standard xed overhead rate " & per hour " 800000
$xed overhead volume variance
to april.
cy variances
2exible budget: variable overhead standard allo-ed hours (,! " standard rate (,#$! 1%'''' hours " 3 per hour " 80000
*avorable ,ciency variance
no
variable overhead applied to wor* in process standard allo-ed hours (,! standard rate (,#$! 1%'''' hours 3 per hour " 80000
