che original overhead budget and the actual costs incurred during April for Piccolo, Jariab nead variances-various issues Presented here are 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 15,000 units in 5,000 standard direct labor hours. Actual production of 16,200 units required 5,600 actual direct labor hours. Original Budget Actual Costs Variable overhead $21,000 $23,600 Fixed overhead 32,000 33,200 Required: . Calculate the flexed budget allowances for variable and fixed overhead for April.
che original overhead budget and the actual costs incurred during April for Piccolo, Jariab nead variances-various issues Presented here are 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 15,000 units in 5,000 standard direct labor hours. Actual production of 16,200 units required 5,600 actual direct labor hours. Original Budget Actual Costs Variable overhead $21,000 $23,600 Fixed overhead 32,000 33,200 Required: . Calculate the flexed budget allowances for variable and fixed overhead for April.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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d, e, & f
Transcribed Image Text:of 15,000 units in 5,000 standard direct labor hours. Actual production of 16,200
Variable and fixed overhead variances-various issues Presented here are
Inc. Piccolo's managers relate overhead to direct labor hours for planning, control,
the original overhead budget and the actual costs incurred during April for Piccolo,
and product costing purposes. The original budget is based on budgeted production
variginal overhead budget and the actual costs incurred during April for Piccolo,
me Piccolo's managers relate overhead to direct labor hours for planning, control,
units required 5,600 actual direct labor hours
Original Budget
Actual Costs
Variable overhead . ....
Fixed overhead . .. ..
$21,000
$23,600
32,000
33,200
Required:
. Calculate the flexed budget allowances for variable and fixed overhead for
April.
Transcribed Image Text: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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