5e sol09-13 - Hansen and Mowen Actual Variable Overhead AH...

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Cost Management Hansen and Mowen Prob 9-13 Name: SOLUTION Enter the appropriate amounts in the shaded cells in columns B, D, E, F, G, H, J, and L. 1) Overhead rates Standard fixed overhead rate = Budgeted fixed overhead Projected volume x Hours per unit = $1,286,400 120,000 x 4 = $2.68 per DLH Standard variable overhead rate = Budgeted variable overhead Projected volume x Hours per unit = $888,000 120,000 x 4 = $1.85 per DLH 2) Applied Overhead Applied fixed overhead = Units produced x DLR/unit x Fixed OH rate = 119,000 x 4 x $2.68 = $1,275,680 Applied variable overhead = Units produced x DLR/unit x Fixed OH rate = 119,000 x 4 x $1.85 = $880,600 Total fixed overhead variance = Actual fixed OH - Applied fixed OH = $1,300,000 - $1,275,680 = $24,320 Underapplied Total variable overhead variance = Actual variable OH - Applied variable OH = $927,010 - $880,600 = $46,410 Underapplied 3) Fixed Overhead Variances: Actual Fixed Overhead DH x SR SH x SR 480,000 x $2.68 476,000 x $2.68 $1,300,000 $1,286,400 $1,275,680 $13,600 U $10,720 U Spending Volume 4) Variable Overhead Variances:
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Cost Management
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Unformatted text preview: Hansen and Mowen Actual Variable Overhead AH x SR SH x SR 487,900 x $1.85 476,000 x $1.85 $927,010 $902,615 $880,600 $24,395 U $22,015 U Spending Efficiency 5) Three-Variance Analysis Volume variance: $10,720 U Variable OH efficiency variance: $22,015 U Spending variance: $37,995 U 6) Journal Entries Debit Credit Work in Process 2,156,280 Variable Overhead Control 880,600 Fixed Overhead Control 1,275,680 Variable Overhead Control 927,010 Fixed Overhead Control 1,300,000 Miscellaneous Accounts 2,227,010 Fixed Overhead Spending Variance 13,600 Fixed Overhead Volume Variance 10,720 Variable Overhead Spending Variance 24,395 Variable Overhead Efficiency Variance 22,015 Fixed Overhead Control 24,320 Variable Overhead Control 46,410 Cost of Goods Sold 70,730 Fixed Overhead Spending Variance 13,600 Fixed Overhead Volume Variance 10,720 Variable Overhead Spending Variance 24,395 Variable Overhead Efficiency Variance 22,015...
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5e sol09-13 - Hansen and Mowen Actual Variable Overhead AH...

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