a. Calculate the flexed budget allowances for variable and fixed overhead for April. b. Calculate the direct labor efficiency variance for April expressed in terms of direct labor hours. c. Calculate the predetermined overhead application rate for both variable and fixed overhead for April. d. Calculate the fixed and variable overhead applied to production during April if overhead is applied on the basis of standard hours allowed for actual production achieved. e. Calculate the fixed overhead budget and volume variances for April. f. Calculate the over- or underapplied fixed overhead for April.
a. Calculate the flexed budget allowances for variable and fixed overhead for April. b. Calculate the direct labor efficiency variance for April expressed in terms of direct labor hours. c. Calculate the predetermined overhead application rate for both variable and fixed overhead for April. d. Calculate the fixed and variable overhead applied to production during April if overhead is applied on the basis of standard hours allowed for actual production achieved. e. Calculate the fixed overhead budget and volume variances for April. f. Calculate the over- or underapplied fixed overhead for April.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Only need A, D, and F answered.
Transcribed Image Text:Presented here are the original overhead budget and the actual costs incurred during
April for Piccolo Inc. Piccolo's managers relate overhead to direct labor hours for planning,
control, and product costing purposes. The original budget is based on budgeted
production of 13,200 units in 4,400 standard direct labor hours. Actual production of
14,400 units required 5,000 actual direct labor hours.
Actual Costs
Variable overhead
Fixed overhead
Original Budget
$21,120
34,320
$23,720
35,700
Required:
a. Calculate the flexed budget allowances for variable and fixed overhead for April.
b. Calculate the direct labor efficiency variance for April expressed in terms of direct labor
hours.
c. Calculate the predetermined overhead application rate for both variable and fixed
overhead for April.
d. Calculate the fixed and variable overhead applied to production during April if
overhead is applied on the basis of standard hours allowed for actual production
achieved.
e. Calculate the fixed overhead budget and volume variances for April.
f. Calculate the over- or underapplied fixed overhead for April.
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