Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE HELP ME TO CALCULATE APPLIED VARIABLE OVERHEAD. PLEASE, PLEASE GIVE DETAILS!! Overhead Application, Fixed and Variable Overhead Variances Zepol Company is planning to produce
PLEASE HELP ME TO CALCULATE APPLIED VARIABLE OVERHEAD. PLEASE, PLEASE GIVE DETAILS!!
Overhead Application, Fixed and Variable Overhead Variances Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.75 standard hour of labor for completion. The total budgeted overhead was $1,777,500. The total fixed overhead budgeted for the coming year is $832,500. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. Actual results for the year are: Actual production (units) 594,000 Actual variable overhead $928,000 Actual direct labor hours (AH) 446,000 Actual fixed overhead $835,600 Required: 1. Compute the applied fixed overhead. $ 824,175 2. Compute the fixed overhead spending and volume variances. Enter amounts as positive numbers and select Favorable or Unfavorable. Spending variance Volume variance $ $ 3,100 8,325 Unfavorable Unfavorable 3. Compute the applied variable overhead. $936,600 x 4. Compute the variable overhead spending and efficiency variances. Enter amounts as positive numbers and select Favorable or Unfavorable. Spending variance Efficiency variance $ $ 8,600 1,050 Favorable UnfavorableStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started