Explanation 111 lungren has budgeted construction

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Introduction to Probability and Statistics
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Chapter 13 / Exercise 2
Introduction to Probability and Statistics
Beaver/Mendenhall
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Explanation:111)Lungren has budgeted construction overhead for August of $260 000 for variable costs and$435 000 for fixed costs. Actual costs for the month totalled $275 000 for variable and $445000 for fixed. Allocated fixed overhead totalled $440 000. The company tracks each item inan overhead control account before allocations are made to individual jobs. Spendingvariances for August were $10 000 unfavourable for variable and $10 000 unfavourable forfixed. The production-volume overhead variance was $5000 favourable. Required:a.Make journal entries for the actual costs incurred.b.Make journal entries to record the variances for August.111)Answer:
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Introduction to Probability and Statistics
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Chapter 13 / Exercise 2
Introduction to Probability and Statistics
Beaver/Mendenhall
Expert Verified
Utilities4004.00per 100 unit batchMaintenance10000.20per machine-hourSupplies5.00per employee dayDuring the year, the company processed 20 000 units, worked 7500 employee days, andhad 4000 machine-hours. The actual costs for 2014 were: Actual costsProduct handling$36 000Inspection9000Utilities1600Maintenance1200Supplies37 500Required:a.Prepare the static budget using the overhead items above and then calculate thestatic-budget variances.b.Prepare the flexible budget using the overhead items above and then calculate theflexible-budget variances.Answer:

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