Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J Weygandt

10th Edition

1118009282, 9781118009284

More Books

Students also viewed these Accounting questions

Question

How will you establish groups?

Answered: 1 week ago

Question

Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago