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3 years ago

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The predetermined overhead rate for Zane Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The

amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $9500 variable and $6050 fixed, and standard hours allowed for the product produced in June was 3000 hours. The total overhead variance is

2 answers:

Usimov [2.4K]3 years ago

8 0

Answer:

Total Overhead Variance= $500 unfavorable

Explanation:

The total overhead variance is the difference between actual overhead and the applied overhead.

Actual Overhead = Variable + Fixed= $9500 + $6050= $ 15,550

Budgeted Overhead for 30000 direct labor hours = $ 150,000

Applied Overhead for 3000 hours = 3000 *$5= $15000

Total Overhead Variance= Actual Overhead Less Applied Overhead

= $15,500- $ 15000= $500 unfavorable

As actual is greater than applied it is unfavorable.

NeTakaya3 years ago

4 0

Answer:

$550 unfavorable.

Explanation:

Total actual overhead = $9,500 + $6,050 = $15,550

Total predetermined overhead = Predetermined overhead rate * Standard hours = $5 * 3,000 = $15,000

Total overhead variance = $15,550 - $15,000 = $550 unfavorable.

Note: It is unfavorable because total actual is greater than total predetermined overhead.

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Answer:

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Explanation:

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3 years ago

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2 years ago

Read 2 more answers

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cupoosta [38]

Answer:

Follows are the instructions to this question:

Explanation:

Given:

Configuration of machine = $\$16,000 \ \ \ \ 40 \ \ \ \ 25 \ \ \ \ 15$

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2 years ago