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trampolines are provided below. Budgeted Information: Production Standard machine hour per unit Variable overhead per machine hour: Indirect labor 15,200 units 1.8 machine hours RM3.50 per machine hour RM0.70 per machine hour RM13.00 per machine hour Power Fixed overhead per machine hour Actual Information: Production Machine hours Variable overhead costs: Indirect labor 15,600 units 28,300 machine hours RM99,300 RM18,711 Power Fixed overhead costs: Rent (building) Depreciation (equipment) Insurance RM250,000 RM76,200 RM48,000 Required: Refer to the information of FunKids above, a) compute and determine whether the company would have a favorable (F) or unfavorable (UF):

trampolines are provided below. Budgeted Information: Production Standard machine hour per unit Variable overhead per machine hour: Indirect labor 15,200 units 1.8 machine hours RM3.50 per machine hour RM0.70 per machine hour RM13.00 per machine hour Power Fixed overhead per machine hour Actual Information: Production Machine hours Variable overhead costs: Indirect labor 15,600 units 28,300 machine hours RM99,300 RM18,711 Power Fixed overhead costs: Rent (building) Depreciation (equipment) Insurance RM250,000 RM76,200 RM48,000 Required: Refer to the information of FunKids above, a) compute and determine whether the company would have a favorable (F) or unfavorable (UF):

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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A. Funkids Berhad produces garden trampolines for kids. The cost information for the trampolines are provided below. Budgeted Information: Production 15,200 units 1.8 machine hours Standard machine hour per unit Variable overhead per machine hour: Indirect labor Power Fixed overhead per machine hour RM3.50 per machine hour RM0.70 per machine hour RM13.00 per machine hour Actual Information: Production Machine hours Variable overhead costs: Indirect labor Power Fixed overhead costs: Rent (building) Depreciation (equipment) Insurance 15,600 units 28,300 machine hours RM99,300 RM18,711 RM250,000 RM76,200 RM48,000 Required: Refer to the information of Funkids above, a) compute and determine whether the company would have a favorable (F) or unfavorable (UF): i. variable overhead rate variance; ii. variable overhead efficiency variance; and iii. total variable overhead variance for the year. b) compute and determine whether the company would have a favorable (F) or unfavorable (UF): i. fixed overhead budget; ii. fixed overhead volume variance; and i. total fixed overhead variance for the year. c) determine whether FunKids has over or under-applied overhead.
Transcribed Image Text:A. Funkids Berhad produces garden trampolines for kids. The cost information for the trampolines are provided below. Budgeted Information: Production 15,200 units 1.8 machine hours Standard machine hour per unit Variable overhead per machine hour: Indirect labor Power Fixed overhead per machine hour RM3.50 per machine hour RM0.70 per machine hour RM13.00 per machine hour Actual Information: Production Machine hours Variable overhead costs: Indirect labor Power Fixed overhead costs: Rent (building) Depreciation (equipment) Insurance 15,600 units 28,300 machine hours RM99,300 RM18,711 RM250,000 RM76,200 RM48,000 Required: Refer to the information of Funkids above, a) compute and determine whether the company would have a favorable (F) or unfavorable (UF): i. variable overhead rate variance; ii. variable overhead efficiency variance; and iii. total variable overhead variance for the year. b) compute and determine whether the company would have a favorable (F) or unfavorable (UF): i. fixed overhead budget; ii. fixed overhead volume variance; and i. total fixed overhead variance for the year. c) determine whether FunKids has over or under-applied overhead.
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