Question
The loan department of Opelka Bank uses standard costs to determine the overhead cost of processing loan applications. During the current month, a fire occurred,
The loan department of Opelka 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
P9
Standard hours per application
2
Standard hours allowed
2,000
Standard fixed overhead rate per hour
P6
Actual fixed overhead cost
P12,600
Fixed overhead budget
P12,600
Overhead controllable variance
P1,200 U
Variable overhead budget based on standard hours allowed
P18,000
Based on the information above, answer the following:
1. Variable overhead costs applied was
2. Total actual overhead cost was
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