Solve for the missing amounts in the following data: Actual direct labor hours w

Question

Solve for the missing amounts in the following data: Actual direct labor hours worked 20,000 Standard direct labor hours for unit produced 22,000 Actual variable overhead cost incurred $24,000 Variable overhead spending variance A Variable Overhead allocated B Variable Overhead efficiency variance $2,500 favorable Standard variable overhead per direct labor hour C Actual variable overhead per direct labor hour D Actual fixed overhead costs incurred$119,600 Budgeted fixed overhead costs E Fixed Overhead denominator activity level (in hours) F Fixed Overhead production volume variance $5,500 unfavorable Standard fixed overhead allocation rate per direct labor hours G fixed overhead budget variance H Total undersupplied or over applied overhead I

Explanation / Answer

Variance Actual Direct labor hrs            20,000 actual Variable OH Cost incurred            24,000 D Actual variable OH /Direct Labor Hr                 1.20 Standard Direct Labor Hrs            22,000 Standard Variable OH rate /Direct labor Hr                 1.25 A Variable OH Spending variance = Actual Direct Labor Hr*( Actual OH rate-Std OH Rate) =20000*(1.2-1.25)              1,000 F not possible to answer this. C Variable OH Efficiency Variance= Std OH rate ( Actual hrs -Std Hrs)              2,500 F Std OH rate ( 2000) =2500 Std OH rate = 1.25 B Variable Overhead Allocated= Actual Direct Labor Hr 8Std Overhead rate=20,000*1.25= $ 25,000.00 D Actual Var OH /Direct Labor= 24000/20000 Actual Fixed OH incurred          119,600 Fixed OH Voliume variance              5,500 U G = Std Fixed OH rate (actual-std hrs)          114,100 =std Fixed OH rate (2000) Std Fixed OH rate =5500/2000 =                 2.75 F Budgeted Direct Labor hrs            22,000 E Budgeted Fixed OH cost =22000*2.75 =            60,500 H Fixed Overhead Budget Variance = 119600-60500            59,100 U I Total OH variance 1 Var OH Spending variance              1,000 F 2 Var OH efficiency variance              2,500 F 3 Fixed OH Vol Variance              5,500 U 4 Fixed OH budget Variance            59,100 U Total OH variance            61,100 U So total overhead overapplied by            61,100

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