You brought your work home one evening, and your nephew spilled his chocolate mi
ID: 2467755 • Letter: Y
Question
You brought your work home one evening, and your nephew spilled his chocolate milk shake on the variance report you were preparing. Fortunately, knowing that overhead was applied based on machine hours, you were able to reconstruct the obliterated information from the remaining data. Fill in the missing numbers below. (Hint: It is helpful to solve for the unknowns in the order indicated by the letters in the following table.) (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance). Round all overhead rates and "Actual machine hours" to 2 decimal places. Round all other calculations to the nearest whole number or dollar.)
I need help with D, E, F, & G
Please show the calculations
Budgeted fixed overhead
$ 26,400
Actual fixed overhead
$ 40,900
a
Budgeted production in units
16,500
Actual production in units
14,500
c
Standard machine hours per unit of output
4
hours
Standard variableoverhead rate per machine hour
$ 10
Actual variableoverhead rate per machine hour
$ 11.30
b
Actual machine hours per unit of output
d
Variableoverhead spending variance
$ 62,400
Unfavorable
Variableoverhead efficiency variance
$ 100,000
Favorable
Fixedoverhead budget variance
$ 14,500
Unfavorable
Fixedoverhead volume variance
g
Total actual overhead
$ 583,300
Total budgeted overhead (flexible budget)
e
Total budgeted overhead (static budget)
f
Total applied overhead
$ 603,200
Budgeted fixed overhead
$ 26,400
Actual fixed overhead
$ 40,900
a
Budgeted production in units
16,500
Actual production in units
14,500
c
Standard machine hours per unit of output
4
hours
Standard variableoverhead rate per machine hour
$ 10
Actual variableoverhead rate per machine hour
$ 11.30
b
Actual machine hours per unit of output
d
Variableoverhead spending variance
$ 62,400
Unfavorable
Variableoverhead efficiency variance
$ 100,000
Favorable
Fixedoverhead budget variance
$ 14,500
Unfavorable
Fixedoverhead volume variance
g
Total actual overhead
$ 583,300
Total budgeted overhead (flexible budget)
e
Total budgeted overhead (static budget)
f
Total applied overhead
$ 603,200
Explanation / Answer
D)Actual variable overhead = Total actual overhead -Total actual fixed overhead
= 583300-40900 =542400
Variable spending variance =AH [AR-SR]
62400 = AH [11.30 -10]
62400 = AH * 1.3
AH = 62400 / 1.3 =48000MH
D)Actual machine hours per unit = 48000/ 14500 = 3.31 per units
e)Total budgeted overhead = Fixed + variable
= 26400 + ( 14500 * 4 * 10)
= 26400 + 580000
= $ 606,400
f)Total budgeted overhead = 26400 + (16500 *4* 10)
= 26400 + 660000
= $ 686400
g)Fixed overhead volume variance = Budgeted - standard fixed overhead
= 26400 - (26400 *14500/16500)
= 26400- 23200
= 3200 U
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