10026_032210_96 - Department Fixed OH 268,580 681,580...

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Outsourcing: CPU P1 350 P2 400 M(1-.1)(250) 225 975 x 90 $87,750 Relevant Cost of Providing this Service Internally: All VC in C 83,820 10% VC in M 9000 (.10)(90,000) $92,820 Green Sheet Handout Problem: VC (M) 171,600 20,000+50,000 = $2.20 P2: 50,000(2.20) = $110,000 FC (M) 234,000 55,000+35,000 = $2.60 P2: 55,000(2.60) = $143,000 Department Var. OH 160,000
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Unformatted text preview: Department Fixed OH 268,580 681,580 / 53,000 = $12.86 Allocated OH: Actual DL Hours x Predicted OH : 51,000 x 12.86 = 655,860 Actual OH: VC (M) (46,000)(2.20) = 101,200 FC (M) = 143,000 Dept. VOH = 140,000 Dept. FOH = 260,000 Total = 644,200 *Overallocated OH by $11,660...
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This note was uploaded on 08/25/2010 for the course ACCT 327 taught by Professor Gillespie,j during the Spring '08 term at University of Delaware.

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