ACCTCH11 - labor-hours labor-hours Variance Variance...

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Mike Poulos Gribbin 3:30 Seat 52 E11-2 1. Flexible Cost Actual Costs Budget Formula Incurred for Based on Per Unit 140 charters 140 charters Variance Variable overhead costs: Cleaning $ 72.50 $ 10,360 $ 10,150 $ 210 U Maintenance $ 56.25 $ 7,630 $ 7,875 $ 245 F Park usage fees $ 15.75 $ 2,210 $ 2,205 $ 5 U Total variable overhead $ 144.50 $ 20,200 $ 20,230 $ 30 F Fixed overhead costs: Salaries and wages $ 7,855 $ 7,860 $ 5 F Depreciation $ 14,450 $ 13,400 $ 1,050 U Utilities $ 735 $ 720 $ 15 U Moorage $ 3,950 $ 3,670 $ 280 U Total overhead cost $ 26,990 $ 25,650 $ 1,340 U 2. Fixed costs, specifically depreciation. This is due to the fact that the new boat was purchased, which begins depreciating as soon as it leaves the boat dealership and increases the anticipated depreciation by one whole boat that they didn’t expect to buy. E11-4 Flexible Flexible Actual Costs Budget at Budget at Cost at 44,000 44,000 45,000 Total Spending Efficiency Formula labor-hours
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Unformatted text preview: labor-hours labor-hours Variance Variance Variance Variable overhead costs: Indirect labor $ 0.90 $ 42,000 $ 39,600 $ 40,500 $ 1,500 U $ 2,400 U $ 900 F Supplies $ 0.15 $ 6,900 $ 6,600 $ 6,750 $ 150 U $ 300 U $ 150 F Electricity $ 0.05 $ 1,800 $ 2,200 $ 2,250 $ 450 F $ 400 F $ 50 F Total variable overhead $ 1.10 $ 50,700 $ 48,400 $ 49,500 $ 1,200 U $ 2,300 U $ 1,100 F Mike Poulos Gribbin 3:30 Seat 52 E11-5 1. Predetermined OH Rate = (OH from flx. Budget/Denominator level of actvy.) = ($600,000/80,000 DLH) = $7.50 fixed per DLH + $3.50 variable per DLH = $11.00 per DLH 2. Applied OH = 80,000 DLH x $11.00 per DLH = $880,000 E11-6 1. $400,000 / 50,000 DLH = $8.00 per DLH 2. Budget Variance = Actual fixed OH cost Budgeted fixed OH cost = $394,000 - $400,000 = $6,000 F Volume Variance = $8.00 per DLH (50,000 DLH 48,000 DLH) = $16,000 U...
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This note was uploaded on 03/31/2008 for the course ACCT 211 taught by Professor Gribbin during the Spring '08 term at Western Michigan.

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ACCTCH11 - labor-hours labor-hours Variance Variance...

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