The ABC Company’s factory overhead rate is $3 per hour. Budgeted overhead for 4,000 hours per month is $18,000 and at 8,000 hours is $26,000. Actual factory overheads for the month are $20,000 and actual volume is 6,000 hours.

Required:

1) Variable overhead per hour

2) Budgeted fixed overhead

3) Normal capacity hours

4) Applied factory overheads

5) Over/under applied factory overheads

6) Spending variance

7) Idle capacity variance

Answer rating: 100% (QA)

1 Variable Overhead per hour Given data Budgeted hours Amount 4000 hours 18000 8000 hours 26000 Ther... View the full answer