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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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. Actual Costs Variable overhead Fixed overhead Original Budget $18,000 37,000 $20,600 38,700 Required: a. Calculate the flexed budget allowances for variable and fixed overhead for Apřil. 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. Complete this question by entering your answers in the tabs below. Required B Required C Required D Required E Required F Required A Calculate the flexed budget allowances for variable and fixed overhead for April. (Do not round intermediate calculations.) Flexed Budget
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 10,000 units in 5,000 standard direct labor hours. Actual production of 10;800 units required 6,000 actual direct labor hours. Actual Costs Variable overhead Fixed overhead Original Budget $18,000 37,000 $20,600 38,700 Required: a. Calculate the flexed budget allowances for variable and fixed overhead for Apřil. 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. Complete this question by entering your answers in the tabs below. Required B Required C Required D Required E Required F Required A Calculate the flexed budget allowances for variable and fixed overhead for April. (Do not round intermediate calculations.) Flexed Budget
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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D RequiredſE Required F Calculate the fixed overhead budget and volume variances for April. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variance < Required D Required F >
Transcribed Image Text: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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D RequiredſE Required F Calculate the fixed overhead budget and volume variances for April. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variance < Required D Required F >
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