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 10,000 units in 5,000 standard direct labor hours. Actual production of 10,800 units required 6,000 actual direct labor hours. Variable overhead Fixed overhead Original Budget $18, 000 37,000 Actual Costs $20,600 38,700 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. duction during April if overhead is applied on the basis of standard hours
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 10,000 units in 5,000 standard direct labor hours. Actual production of 10,800 units required 6,000 actual direct labor hours. Variable overhead Fixed overhead Original Budget $18, 000 37,000 Actual Costs $20,600 38,700 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. duction during April if overhead is applied on the basis of standard hours
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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