Understanding Relationships between Overhead Variances, Budgeted Amounts, and Ac

Question

Understanding Relationships between Overhead Variances, Budgeted Amounts, and Actual Units Produced and Direct Labor Hours Worked Last year, Gladner Company had planned to produce 144,500 units. However, 145,945 units were actually produced. The company uses direct labor hours to assign overhead to products. Each unit requires 0.9 standard hour of labor for completion. The fixed overhead rate was $11 per direct labor hour and the variable overhead rate was $6.36 per direct labor hour.

The following variances were computed: Fixed overhead spending variance $24,000 U Variable overhead spending variance $9,196 U Fixed overhead volume variance 29,700 F Variable overhead efficiency variance 1,272 U Required: Round your answers to the nearest whole dollar.

1. Calculate the total applied fixed overhead. $1,444,856

2. Calculate the budgeted fixed overhead. $1,430,550

3. Calculate the actual fixed overhead. $ 1,454,550

4. Calculate the total applied variable overhead. $ 835,389

5. Calculate the number of actual direct labor hours. hrs 131,550

6. Calculate the actual variable overhead. $

I have the answers that are correctfor all questions but #6. I have searched chegg on how to solve this but all the other questions are qrong can someone please help me with this thank you. The AH(AR-SR) has not worked for me

Explanation / Answer

Solution:-

1.  Calculate the total applied fixed overhead:-

Actual hrs = Actual output*0.9

= 145945*0.9 = 131350.5

131350.5*11 = 1444856

2.Calculate the budgeted fixed overhead:-

Std hrs = 144500*0.9 = 130050

130050*11 = 1430550

3.Calculate the actual fixed overhead:-

  Fixed overhead spending variance $24,000 U

1430550+24000 = 1454550

4. Calculate the total applied variable overhead:-

131350.5*6.36 = 835389

5.Calculate the number of actual direct labor hours:-

Actual hrs = Actual output*0.9

= 145945*0.9 = 131350.5

6. Calculate the actual variable overhead:-

  total applied variable overhead + Variable overhead spending variance $9,196 U + Variable overhead efficiency variance 1,272 U

835389 + 9196 + 1272 = 845857

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