{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

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

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern