Question
Exercise 7-40 (Algorithmic) OH variances KrisKross Inc.s total predetermined overhead rate is $56 per hour based on a monthly capacity of 68,770 machine hours. Overhead
Exercise 7-40 (Algorithmic)
OH variances
KrisKross Inc.s total predetermined overhead rate is $56 per hour based on a monthly capacity of 68,770 machine hours. Overhead is 35 percent variable and 65 percent fixed.
During September 2013, KrisKross produced 5,430 units of product and recorded 69,420 machine hours. Septembers actual overhead cost was $3,808,162. Each unit of product requires 13 machine hours. When required, round your final answers to the nearest dollar.
a.) What were standard hours for September
$____________ standard hours
b.) What is total monthly budgeted fixed overhead cost?
$____________ budgeted monthly FOH
c.) What is the controllable overhead variance?
$____________ favorable
d.) What is the non-controllable overhead variance?
$____________ favorable
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