Question

Country Clinic charges its patients on the basis of actual direct costs incurred plus fixed costs at the rate of $40 per hour. The fixed cost rate of $40 per hour is based on the assumption of 6,000 patient hours monthly, assuming that each patient requires 1/2 hour. During September 11,000 patients were seen and the following costs were recorded.
Fixed overhead costs allocated to patients .... $248,000
Fixed overhead spending variance ....... 24,000 unfavorable

REQUIRED
A. How many patient hours were recorded?
B. What was the budgeted fixed cost?
C. What was the production volume variance?
D. What was the actual fixed overhead?



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  • CreatedJanuary 26, 2015
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