Ch 16 Online Review - 6-16.xlsx - Chapter 16 Problem 1 Forecasted Overhead costs at beginning of year Forecasted Units to be produced at beginning of

Ch 16 Online Review - 6-16.xlsx - Chapter 16 Problem 1...

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Chapter 16 Problem 1 Forecasted Overhead costs at beginning of year $ 250,000 Forecasted Units to be produced at beginning of year 600,000 Actual Overhead costs at end of year $ 220,000 Actual Units to be produced at end of year 620,000 1. What is the pre-determined overhead rate/unit? 0.42 2. What is total applied overhead at the end of the year? 258,333 3. What is the variance at the end of the year? 38,333 4. Is the variance over or under applied? Over 5. What do you do with the variance is: (a) the company did not sell any of the units produced? (b) the company sold all of the units produced? ACTUAL COSTS: Advertising Expense 500 Depreciation on the cash register 300 Depreciation on the ovens 400 Wages for the person running the cash register 800 Repair costs during the period for the cash regsiter 100 Repair costs during the period for the oven 200 Wages for doughnut cookers (direct labor) 1,000 Direct Materials 350 Cleaning supplies for the oven 100 Utilities for the kitchen 200 TOTAL OVERHEAD COSTS?
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Chapter 16 Problem 1 - Answers
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