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The loan department of Calgary Bank uses standard costs to determine the overhead cost of processing loan applications. During the current month, a fire occurred,
The loan department of Calgary Bank uses standard costs to determine the overhead cost of processing loan applications. During the current month, a fire occurred, and the accounting records for the department were mostly destroyed. The following data were salvaged from the ashes. Standard variable overhead rate per hour $9 Standard hours per application 3 Standard hours allowed 3, 660 Standard fixed overhead rate per hour $6 Actual fixed overhead cost $23, 100 Variable overhead budget based on standard hours allowed $32, 940 Fixed overhead budget $23, 100 Overhead controllable variance $1, 200 U Determine the following. (1) Total actual overhead cost $ 57240 (2) Actual variable overhead cost $ 34140 (3) Variable overhead costs applied $ 32940 (4) Fixed overhead costs applied $ 21960 (5) Overhead volume variance $ 1140
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