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Category > Management Posted 12 Oct 2017 My Price 7.00

Lusive Corporation

EXERCISE 10A–2 Fixed Overhead Variances [LO4]

Lusive Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:

 

Total budgeted fixed overhead cost for the year . . . . . . . . . . . . . . . . . . . .

$400,000

Actual fixed overhead cost for the year. . . . . . . . . . . . . . . . . . . . . . . . . . .

$394,000

Budgeted standard direct labor-hours (denominator level of activity) . . . .

50,000

Actual direct labor-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

51,000

Standard direct labor-hours allowed for the actual output . . . . . . . . . . . . .

48,000

 

Required:

1.       Compute the fixed portion of the predetermined overhead rate for the year.

2.       Compute the fixed overhead budget and volume variances.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Oct 2017 08:10 PM My Price 7.00

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