Hastings Company bases its variable overhead performance report on the actual direct labour- hours of the period.

Question:

Hastings Company bases its variable overhead performance report on the actual direct labour- hours of the period. Data concerning the most recent year, which ended on December 31, are as follows:

Budgeted direct labour-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,000

Actual direct labour-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,000

Standard direct labour-hours allowed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000

Cost formula (per direct labour-hour):

Indirect labour. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.90

Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.15

Electricity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.05

Actual costs incurred:

Indirect labour. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $42,000

Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,900

Electricity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,800

Required:

Prepare a variable overhead performance report using the format in Exhibit 10€“13. Compute both variable overhead spending and efficiency variances.

Exhibit 10-13

HEIRLOOM PEWTER CORPORATION Overhead Performance Report For the Month Ended June 30 Budget allowances are based on the d
Fantastic news! We've located the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Managerial Accounting

ISBN: 978-1259024900

9th canadian edition

Authors: Ray Garrison, Theresa Libby, Alan Webb

Question Posted: