Question: Elise s Draperies uses flexible budgeting and activity based costing The company s

Elise’s Draperies uses flexible budgeting and activity-based costing. The company’s budget for variable overhead is $24,000 and the budget for fixed overhead is $20,000. When the company analyzes overhead using ABC, the budgeted overhead of $44,000 is traced to three activities: assembly, finishing, and inspection. The costs associated with each activity and their respective cost drivers are as follows:


The actual cost and total volume for each activity are as follows:


Required
A. Compute the overhead application rate for each activity.
B. Using the actual volume and cost, compute the spending variance, the efficiency variance, and the total variance for eachactivity.


Sale on SolutionInn
Sales0
Views75
Comments
  • CreatedMarch 11, 2015
  • Files Included
Post your question
5000