* Delete Row Remove Condition ICK HERE TO SAVE YOUR WORK 127 A B C D E G H J K L Scott Company's flexible budget for manufacturing overhead (in condensed form) is provided in the following table: Direct Labour-Hours 40,000 50,000 60,000 Variable overhead $84,000 $105,000 $126,000 Fixed overhead 180.000 180,000 180.000 Total overhead costs $264,000 $285,000 $306.000 The following information is available for a recent period: 1 a The denominator activity level was 60,000 machine hours. 12 b The company should produce 20,000 units of product at the denominator level of activity. 13 c) The company's actual operating results were as follows: Number of units produced 17,500 Actual direct labour-hours 49,000 Actual variable overhead costs $105,350 Actual fixed overhead costs $183,500 18 19 Required a) Calculate the predetermined overhead rate and break it down into variable and fixed overhead cost elements. (3 marks) Supporting calculations 21 22 1 ) OHV VB Answer sheet New DELLColumn Merge Cell Conditional Formatting 3- Insert Row ICK HERE TO SAVE YOUR WORK Delete Row Remove Conditional Formats L27 A Required F G H K a) Calculate the predetermined overhead rate and break it down into variable and fixed overhead cost elements. (3 marks) Predetermined overhead rate Supporting calculations $5.10 Standard hours= actual units produced* standard Variable portion of the overhead rate $2.10 Fixed portion of the overhead rate $3.00 b) Calculate the standard hours allowed for the production in the recent period. (2 marks) Units produced 17500*60000 Standard hours per unit 20000.0 Standard hours allowed for production 52,500 c) Calculate the variable overhead spending variance, the variable overhead efficiency variance, the fixed overhead budget variance, and the fixed overhead volume variance. (8 marks) Supporting calculations Variable overhead spending variance Variable overhead efficiency variance | OHV VB Answer sheet Ne DELLB C F 40 G H K L 41 42 43 Fixed overhead budget variance Supporting calculations 44 Fixed overhead volume variance 45 46 47 48 49 d) Was the total overhead over or under-applied? (2 marks) 50 51 Variable overhead spending variance 52 Variable overhead efficiency variance 53 Fixed overhead budget variance 54 Fixed overhead volume variance 55 Total overhead variance 56 57 58 1 1 14 1 ) OHV VB Answer sheet New DELL