a edugen wileyplus.com Kimmel, Accounting: Tools for Business Decision Making, S

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a edugen wileyplus.com Kimmel, Accounting: Tools for Business Decision Making, Se Help 0 Problem 23-9A Hopkins hiers is a small company that manufactures tall-mers sis. The companhat used a ladat antac artig-on n-ac produced. The following standard and actual cost data appled tote month of May normal capaOty 15000 dretter hon·INten-Prom.mut Direct Direct labor 149 hours at $13.00 per hour Overhead Overhead is applied on the basis of direct labor hours. At normall capacity, budgeted fxed overhead costs were 552,500, and budgeond warable overhead Compute the overhead controllable variance and the Overhead controlilable variance Overthesd volume varance 8 yards at $4.30 per yard 343,823 for 83,250 ars (4.13 per yare) $213,958 for 15,967 hours (13.40 per hour) 1.49 hours at $6.40 per hour (xed $3.50; variable $9,700 faxed overhead $37,000 variabie $2.90) 1,5 overhead volume varance. (Round answers to 0 deci almaces, .+ 12 Click if you would like to Show Work for this question: Open Show Work LINK TO 4 2

Explanation / Answer

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Overhead Controllable Variance = $     20,306 Favourable Overhead Volume Variance = $       1,215 Favourable Overhead Controllable Variance actual overhead - Overhead Budgeted $ 76,700 - $ 97,006

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$     20,306 Favourable actual overhead

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($39,700 + $37,000) = $ 76,700 Overhead Budgeted = (15,347 X $2.90) + $52,500 = $ 97,006 Standard hours allowed: *(10,300 X 1.49) = 15,347 Overhead Volume Variance Fixed overhead rate X (Normal capacity hours - Standard hours allowed) $                                                       3.50 X (15,000 - 15,347 ) = $       1,215 Favourable

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