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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onsible for each.
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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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This note was uploaded on 07/09/2011 for the course ACG 2071 taught by Professor Tanner during the Spring '11 term at UNF.

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

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