## Overhead Budget Analysis for Piccolo Inc. Presented here are the original overhead budget and the actual costs incurred during April for Piccolo Inc. Piccolo’s managers use these figures for control and product-costing purposes. The original budget is based on the budgeted production of 10,000 units using 50,000 standard direct labor hours. Actual production for April was 10,600 units, requiring 60,000 actual direct labor hours. ### Budgeted and Actual Costs | | Variable Overhead | Fixed Overhead | |----------------|-------------------|----------------| | **Original Budget** | $31,500 | $35,720 | | **Actual Costs** | $32,300 | $35,330 | ### Required Analysis **a. Calculate the flexed budget allowances for variable and fixed overheads for April.** **b. Calculate the spending variance for April and express it in terms of direct labor hours.** **c. Calculate the predetermined overhead application rate for the budget.** **d. Calculate the amount of overhead applied to production during April, allowing for the actual production achieved.** **e. Calculate the flexible budget variances for April overheads.** **f. Calculate the over- or underapplied overhead for April.** Complete this analysis by entering your answers in the tabs below: - **Required A**: Flexed Budget Allowances - **Required B**: Spending Variances - **Required C**: Predetermined Overhead Rate - **Required D**: Applied Overhead - **Required E**: Flexible Budget Variances - **Required F**: Over-/Underapplied Overhead **Note**: During April, overhead is applied based on standard hours allowed for production. Ensure calculations are accurate and do not round intermediate calculations.
## Overhead Budget Analysis for Piccolo Inc. Presented here are the original overhead budget and the actual costs incurred during April for Piccolo Inc. Piccolo’s managers use these figures for control and product-costing purposes. The original budget is based on the budgeted production of 10,000 units using 50,000 standard direct labor hours. Actual production for April was 10,600 units, requiring 60,000 actual direct labor hours. ### Budgeted and Actual Costs | | Variable Overhead | Fixed Overhead | |----------------|-------------------|----------------| | **Original Budget** | $31,500 | $35,720 | | **Actual Costs** | $32,300 | $35,330 | ### Required Analysis **a. Calculate the flexed budget allowances for variable and fixed overheads for April.** **b. Calculate the spending variance for April and express it in terms of direct labor hours.** **c. Calculate the predetermined overhead application rate for the budget.** **d. Calculate the amount of overhead applied to production during April, allowing for the actual production achieved.** **e. Calculate the flexible budget variances for April overheads.** **f. Calculate the over- or underapplied overhead for April.** Complete this analysis by entering your answers in the tabs below: - **Required A**: Flexed Budget Allowances - **Required B**: Spending Variances - **Required C**: Predetermined Overhead Rate - **Required D**: Applied Overhead - **Required E**: Flexible Budget Variances - **Required F**: Over-/Underapplied Overhead **Note**: During April, overhead is applied based on standard hours allowed for production. Ensure calculations are accurate and do not round intermediate calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hello, I would need guidance with A-F, if possible.
Transcribed Image Text:## Overhead Budget Analysis for Piccolo Inc.
Presented here are the original overhead budget and the actual costs incurred during April for Piccolo Inc. Piccolo’s managers use these figures for control and product-costing purposes. The original budget is based on the budgeted production of 10,000 units using 50,000 standard direct labor hours. Actual production for April was 10,600 units, requiring 60,000 actual direct labor hours.
### Budgeted and Actual Costs
| | Variable Overhead | Fixed Overhead |
|----------------|-------------------|----------------|
| **Original Budget** | $31,500 | $35,720 |
| **Actual Costs** | $32,300 | $35,330 |
### Required Analysis
**a. Calculate the flexed budget allowances for variable and fixed overheads for April.**
**b. Calculate the spending variance for April and express it in terms of direct labor hours.**
**c. Calculate the predetermined overhead application rate for the budget.**
**d. Calculate the amount of overhead applied to production during April, allowing for the actual production achieved.**
**e. Calculate the flexible budget variances for April overheads.**
**f. Calculate the over- or underapplied overhead for April.**
Complete this analysis by entering your answers in the tabs below:
- **Required A**: Flexed Budget Allowances
- **Required B**: Spending Variances
- **Required C**: Predetermined Overhead Rate
- **Required D**: Applied Overhead
- **Required E**: Flexible Budget Variances
- **Required F**: Over-/Underapplied Overhead
**Note**: During April, overhead is applied based on standard hours allowed for production. Ensure calculations are accurate and do not round intermediate calculations.
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