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The loan department of Your Local Bank uses standard costs to determine the overhead cost of processing loan applications. During the current month, a fire
The loan department of Your Local 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 | 3,000 | |||
Standard fixed overhead rate per hour | $6 | |||
Actual fixed overhead cost | $19,800 | |||
Variable overhead budget based on standard hours allowed | $27,000 | |||
Fixed overhead budget | $19,800 | |||
Overhead budget variance | $1,500 | Unfavourable |
1. Total actual overhead cost 2. Actual variable overhead cost
3. Variable overhead cost applied
4. Fixed overhead cost applied
5. Overhead volume variance
Determine how many loans were processed.
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