assign 8-2 - = 25100 24800 = 300 Volume variance = 3.1 *...

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Exercise 9-8 Part 1 Predetermined OH rate = 33200/8000 = $ 4.15 per machine-hour Variable component = 8400/8000 = $1.05 per machine-hour Fixed component = 24800/8000 = $3.1 per machine-hour (note- I am not sure how to compute the standard hours allowed for the actual production.) Part 2 If it takes 8000 machine hours to produce 3200 units, then in order to produce 3500 units, it take 8750 machine hours. Part 3 Variable OH spending variance = (8500 * 8750 ) – (8500 * 8000) = 6375000 Variable OH efficiency variance = (8500 * 8400 ) – (8000 * 8000) = 71400000 – 64000000 = 7400000 Budget variance = actual fixed OH cost –Budgeted fixed overhead cost
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Unformatted text preview: = 25100 24800 = 300 Volume variance = 3.1 * (8000-8750) = -2325 Exercise 9-9 (not sure if I did this correctly. ) cost formula activity in machine hours variable OH costs: 8000 9000 10000 supplies 0.2 1600 1800 2000 indirect labor 0.25 2000 2250 2500 utilities 0.15 1200 1350 1500 maintenance 0.1 800 900 1000 Total variable OH costs 0.7 5600 6300 7000 Fixed OH costs: depr 8000 8000 8000 indirect labor 10000 10000 10000 maintenance 7000 7000 7000 Total fixed OH costs 25000 25000 25000 Total OH costs 30600 31300 32000...
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This note was uploaded on 10/10/2010 for the course ACCT 225 S taught by Professor Webster during the Spring '10 term at Franklin.

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