1 the summary information is the solutions

• Notes
• coecoe85
• 74
• 100% (6) 6 out of 6 people found this document helpful

This preview shows page 10 - 14 out of 74 pages.

1. The summary information is: The Solutions Corporation (June 2012) Actual Flexible Budget Static Budget Outputs units (number of assembled units) 216 216 200 Hours of assembly time 411 432c 400a Assembly hours per unit 1.90b 2.00 2.00 Variable mfg. overhead cost per hour of assembly time \$ 31.00d \$ 30.00 \$ 30.00 Variable mfg. overhead costs \$12,741 \$12,960e \$12,000f Fixed mfg. overhead costs \$20,550 \$19,200 \$19,200 Fixed mfg. overhead costs per hour of assembly time \$ 50.00g \$ 48.00h a 200 units × 2 assembly hours per unit = 400 hours b 411 hours ÷ 216 units = 1.90 assembly hours per unit c 216 units × 2 assembly hours per unit = 432 hours d \$12,741 ÷ 411 assembly hours = \$31.00 per assembly hour e 432 assembly hours × \$30 per assembly hour = \$12,960 f 400 assembly hours × \$30 per assembly hour = \$12,000 g \$20,550 ÷ 411 assembly hours = \$50 per assembly hour h \$19,200 ÷ 400 assembly hours = \$48 per assembly hour 8-9
Flexible Budget: Allocated: Actual Costs Actual Input Quantity × Budgeted Input Quantity Allowed Budgeted Budgeted Input Quantity Allowed Budgeted Incurred Budgeted Rate for Actual Output × Rate for Actual Output × Rate Variable 411 × \$30.00 432 × \$30.00 432 × \$30.00 Manufacturing assy. hrs. per assy. hr. assy. hrs. per assy. hr. assy. hrs. per assy. hr. Overhead \$12,741 \$12,330 \$12,960 \$12,960 \$411 U \$630 F Spending variance Efficiency variance Never a variance \$219 F Flexible-budget variance Never a variance \$219 F Overallocated variable overhead Flexible Budget: Allocated: Actual Costs Static Budget Lump Sum Static Budget Lump Sum Budgeted Input Allowed Budgeted Incurred Regardless of Output Level Regardless of Output Level for Actual Output × Rate Fixed 432 × \$48.00 Manufacturing assy. hrs. per assy. hr. Overhead \$20,550 \$19,200 \$19,200 \$20,736 \$1,350 U \$1,536 F Spending Variance Never a Variance Production-volume variance \$1,350 U \$1,536 F Flexible-budget variance Production-volume variance \$186 F Overallocated fixed overhead 8-10 The summary analysis is: