Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cost Accounting Walkenhorst Companys machining department prepared its 2016 budget based on the following data: Practical capacity 40,000 units Machine hours per unit 2.00 Variable

Cost Accounting

Walkenhorst Companys machining department prepared its 2016 budget based on the following data:

Practical capacity 40,000 units
Machine hours per unit 2.00
Variable factory overhead $3.00 per machine hour
Fixed factory overhead $328,000

The department uses machine hours to apply factory overhead. In 2016, the department used 86,700 machine hours and $596,000 in total manufacturing overhead to manufacture 42,160 units. Actual fixed overhead for the year was $346,000.

Required:
Determine for the year:

1)The variable, fixed, and total factory overhead application rates. (Round your answers to 2 decimal places.)

2)The flexible budget for overhead cost based on output achieved in 2016. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

3)The fixed overhead production volume variance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

4)

The total overhead spending variance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

5)The overhead efficiency variance. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

6)The variable and fixed overhead spending variances. (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Theory And Practice

Authors: Roger H. Hermanson

1st Edition

0256023301, 978-0256023305

More Books

Students also viewed these Accounting questions

Question

How are overhead variances useful in nonmanufacturing settings?

Answered: 1 week ago

Question

6. Conclude with the same strength as in the introduction

Answered: 1 week ago

Question

7. Prepare an effective outline

Answered: 1 week ago