00 actual flexiblebudget results amount 960 960 1824

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Unformatted text preview: overhead overheadcosts   If total overhead is allocated at 120% of direct labour ­‑cost, the single overheadratemustbe120%of$16.00,or$19.20perhour.Therefore,the fixedoverheadcomponentoftheratemustbe$19.20–$8.00,or$11.20per directlabour ­‑hour.  LetD=denominatorlevelininputunits Budgeted fixed Budgetedfixedoverheadcosts  overhead rate  = Denominatorlevelininputunits per input unit  $11.20 = $47,040÷D  D = 4,200directlabour ­‑hours Asummarythree ­‑varianceanalysisforOctoberfollows:   FlexibleBudget: Allocated:   BudgetedInput BudgetedInput Actual  Allowedfor Allowedfor Costs ActualInputs ActualOutput ActualOutput Incurred ×BudgetedRate ×BudgetedRate ×BudgetedRate  ($47,040+(4,820×$8.00) $47,040+($8×4,700) (4,700hrs.×$19.20) $99,600* $85,600 $84,640 $90,240  $14,000 U $960 U $5,600 F*  Rate variance Efficienc...
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