The control of variable manufacturing overhead

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: alInput ActualOutput Incurred ×BudgetedRate ×BudgetedRate * (4,820hrs.×$16.80) (4,820hrs.×$16.00 ) (4,700hrs.×$16.00*) $80,976* $77,120 $75,200 $3,856 U * Price variance $1,920 U Efficiency variance $5,776 U * Flexible-budget variance Given DirectLabourcalculations Actualinput×Budgetedrate  =Actualcosts–Pricevariance     =$80,976–$3,856=$77,120 Actualinput=$77,120÷Budgetedrate =$77,120÷$16=4,820hours Budgetedinput×Budgetedrate  =$77,120–Efficiencyvariance      =$77,120–$1,920=$75,200 Budgetedinput=$75,200÷Budgetedrate=$75,200÷16=4,700hours  ProductionOverhead Variableoverheadrate= $25,600* ÷ 3,200* hrs. = $8.00 per standard labour ­‑ hour Budgetedfixed  =$79,040*–(4,000*×$8.00)=$47,040fixed...
View Full Document

Ask a homework question - tutors are online