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Category > Accounting Posted 19 Aug 2017 My Price 9.00

Gladner Company

Exercise 11-38 Understanding Relationships between Overhead Variances, Budgeted Amounts, and Actual Units Produced and Direct Labor Hours Worked

Last year, Gladner Company had planned to produce 140,000 units. However, 143,000 units were actually produced. The company uses direct labor hours to assign overhead to products. Each unit requires 0.9 standard hour of labor for completion. The fixed overhead rate was $11 per direct labor hour and the variable overhead rate was $6.36 per direct labor  hour.

The following variances were computed:

 

Fixed overhead spending variance Fixed overhead volume variance

$24,000 U    Variable overhead spending variance 29,700 F    Variable overhead efficiency variance

$9,196 U

1,272 U

Required:

 

 

1.       Calculate the total applied fixed overhead.

2.       Calculate the budgeted fixed overhead.

3.       Calculate the actual fixed overhead.

4.       Calculate the total applied variable overhead.

5.       Calculate the number of actual direct labor hours.

6.       Calculate the actual variable overhead.

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Maurice Tutor
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Status NEW Posted 19 Aug 2017 03:08 PM My Price 9.00

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