The control of variable manufacturing overhead

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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...
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