Week4_Bancroft

Week4_Bancroft - Fixed Manufacturing Overhead Variance...

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Fixed Manufacturing Overhead Variance Analysis for French Bread Compa Flexible Budg Same Budgeted Same Budgete Lump Sum Lump Sum (as in Static Budget) (as in Static Bud Regardless of Regardless o Actual Costs Incurred Output Level Output Leve (1) (2) (3) 272000 201600 201600 70,400 F Spending variance Never a variance Prod $294,400 F Flexible-budget variance Prod Overallocated by $294,400, so favorable affect on operating income.
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any for 2012 et: ted Allocated: dget) Budgeted Input Quantity Allowed of for Actual Output el × Budgeted Rate (4) 560,000 (0.02hr/unit*2,800,000 units* $4 per/hr) 224,000 F duction-volume variance duction-volume variance
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Actual Static Budget Number of books produced 324,000 300,000 Avg number of books per setup 480 500 Hours to set up printers 8.2 8 Direct variable cost per setup hour 39 40 Total fixed setup overhead costs 119,000 105,600 1 Static budget number of set-ups: 300000/500 600 2 Flexible budget number of set-ups: 240000/500 648 3 Actual number of set-ups: 324000/480 675 4 600 set-ups *8 hrs per set-up 4800 hours $105,600/4800hrs $22 /set-up hour 5 Yes, the budgeted direct variable csot of an order is $320. No, the total budgeted cost is $496 ($22 fixed cost plus $40 variable cost times 8 hours per
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Week4_Bancroft - Fixed Manufacturing Overhead Variance...

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