65 Question3 (12 marks) The following information comprises ABC Corps budgeted and actual results Fixed and variable overhead are allocated based on Direct labor hours BUDGET Sell at DM $250 3.5lbs 6 hrs S11/1b $26/hr VOH S2/DL hr Volume 7500 units ACTUALS Revenue total OH Actual Units $ $ 1,861,500 1,000,000 7300 DL DM purchased DM used 45000hrs at $25.00 30000 lbs at $10.00 27000lbs $ $ 1,125,000 300,000 OVERHEADS Total allocated overhead is DM used 27000lbs OVERHEADS Total allocated overhead is OH efficiency variance is OH volume variance is (18,000) (8.400) 92 93 Calculate Revenue - Volume variance Price Variance Direct Materials Volume variance Price variance purchased Price variance used Efficiency variance Direct Labor -Price variance -Efficiency variance Total allocated overhead OH price variance 103 105 106 65 Question3 (12 marks) The following information comprises ABC Corps budgeted and actual results Fixed and variable overhead are allocated based on Direct labor hours BUDGET Sell at DM $250 3.5lbs 6 hrs S11/1b $26/hr VOH S2/DL hr Volume 7500 units ACTUALS Revenue total OH Actual Units $ $ 1,861,500 1,000,000 7300 DL DM purchased DM used 45000hrs at $25.00 30000 lbs at $10.00 27000lbs $ $ 1,125,000 300,000 OVERHEADS Total allocated overhead is DM used 27000lbs OVERHEADS Total allocated overhead is OH efficiency variance is OH volume variance is (18,000) (8.400) 92 93 Calculate Revenue - Volume variance Price Variance Direct Materials Volume variance Price variance purchased Price variance used Efficiency variance Direct Labor -Price variance -Efficiency variance Total allocated overhead OH price variance 103 105 106