Each of the following are independent cases. Each company uses a standard cost system and applies overhead to production based on standard machine hours (MHs)

ITEM COMPANY A COMPANY B

Denominator hours in machine hours ? 40,000

Standard machine hours allowed 32,000 ?

Actual machine hours worked 30,000 ?

Budgeted Variable Overhead Per MH ? $2.80

Budgeted Fixed Overhead ( TOTAL) ? ?

Actual Variable Overhead cost $54,000 $117,000

Actual fixed overhead Cost $209,400 $302,100

Variable Overhead applied to production ? $117,600

Fixed Overhead applied to production. $192,000 ?

VOH spending Variance ? ?

VOH efficiency Variance $3,500 F $8,400 U

FOH budget variance ? $2,100 U

FOH Volume Variance $18,000 U ?

Standard rate for VOH ? ?

Standard rate for FOH ? ?

Over (or under) applied MOH ? ?

REQUIRED:

Prepare both the VOH and FOH diagrams for each company in good form.

Prepare the MOH T-account for each company to identify the over (or under) applied overhead amount. [#16 above]

Calculate/ identify the unknown amounts listed above.