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HW69_70sol

HW69_70sol - Problem 70 Variable overhead Rate x Actual...

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Problem 69 Variable overhead: Rate x Actual Applied \$22,000 = \$11.00 x 2,060 = \$22,660 2,000 Fixed overhead: \$62,000 = \$31.00 x 2,060 = \$63,860 2,000 \$86,520 Actual Flexible budget Applied Variable 22,400 \$22,660 \$22,660 (\$11*2,060) (\$11*2,060) Fixed 61,700 62,000 \$63,860 (\$31*2,060) total \$84,100 \$84,660 \$86,520 \$560 F \$1,860 F Controllable variance Volume variance \$2,420 F Total Overhead variance 2% Threshhold 2%*\$84,660 = \$1,693 Investigate Controllable variance - production supervisor Volume variance not investigated because the reason is known. A. Determine how much overhead the company applied during the year, B. Calculate all overhead variances. C. If 2% is the threshold for materiality, indicate which variances should be investigated and who is respo

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Unformatted text preview: Problem 70 Variable overhead: Rate x Actual Applied \$18,000 = \$6.00 3,100 \$18,600 3,000 Fixed overhead: \$4,050 = \$1.35 3,100 \$4,185 3,000 \$22,785 Actual Flexible budget Applied Variable 18,000 \$18,600 \$18,600 (\$6*3,100) (\$6*3,100) Fixed 4,050 4,050 \$4,185 (\$1.35*3,100) total \$22,050 \$22,650 \$22,785 \$600 F \$135 F Controllable variance Volume variance \$735 F Total Overhead variance 2% Threshhold 2%*\$22,650 = \$453 Investigate Controllable variance - production supervisor Volume variance not investigated because the reason is known. A. Determine how much overhead the company applied during the year, B. Calculate all overhead variances. C. If 2% is the threshold for materiality, indicate which variances should be investigated and who is respon nsible for each....
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HW69_70sol - Problem 70 Variable overhead Rate x Actual...

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