ACCT 225 - Assignment 8-2

# ACCT 225 - Assignment 8-2 - \$300 U \$2,325 F Total Variance...

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Exercise 9-8 1 Overall rate = 4.15 per MH 33200/8000 MHs Variable Rate = 1.05 per MH 8400/8000 MHs Fixed Rate = 3.10 per MHs 24800/8000 MHs 2 The standard hours per unit of product are: 8,000 MHs ÷ 3,200 units = 2 The standard hours allowed for the actual production would 3,500 units × 2.5 MHs per u 3 = (AH × AR) – (AH × SR) = (\$9,860) – (\$8,925) = \$935 U = SR (AH – SH) = \$262.50 F Fixed overhead budget an Variable overhead spending  variance = (\$9,860) – (8,500 MHs ×  \$1.05 per MH) Variable overhead efficiency  variance = \$1.05 per MH (8,500 MHs –  8,750 MHs)

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Actual Fixed Overhead Cost \$25,100  Budget Varia
2.5 MHs per unit  be: unit = 8,750 MHs nd volume variances

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Budgeted Fixed Overhead Cost \$24,800  8,000 MHs × \$3.10 p iance= \$25,100-24800 Volume Variance = 3.10 per MH

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Unformatted text preview: \$300 U \$2,325 F Total Variance, \$2,025 F Fixed Overhead Cost Applied to Work in Process per MH = \$24,800 8,750 standard MHs × \$3.10 per MH = \$27,125 (8000 MHs-8750 MH) Exercise 9-9 Swa Flex Cost Formula Overhead Costs per MH 8,000 Variable: Supplies \$0.20 \$ 1,600 Indirect labor 0.25 2,000 Utilities 0.15 1,200 Maintenance \$0.70 Fixed Indirect labor 10,000 Maintenance 7,000 Depreciation \$30,600 0.10 800 Total variable overhead cost 5,600 8,000 Total fixed overhead cost 25,000 Total overhead cost an Company xible Budget Machine-Hours 9,000 10,000 \$ 1,800 \$ 2,000 2,250 2,500 1,350 1,500 10,000 10,000 7,000 7,000 \$31,300 \$32,000 900 1,000 6,300 7,000 8,000 8,000 25,000 25,000...
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## This note was uploaded on 05/02/2008 for the course ACCT 225 taught by Professor H during the Winter '08 term at Franklin.

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ACCT 225 - Assignment 8-2 - \$300 U \$2,325 F Total Variance...

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