Overhead Application, Fixed and Variable Overhead Variances Overhead Application, Fixed and Variable Overhead Variances

Kojima Company is planning to produce $2,400,000$ power drills for the coming year. The company uses direct labour hours to assign overhead to products.

Each drill requires $0\mathrm{.}4$ standard hour of labour for completion. The total budgeted overhead was $$1,982,900.$ The total fixed overhead budgeted for the

coming year is $$1,326,300.$ Predetermined overhead rates are calculated using expected production, measured in direct labour hours. Actual results for the

year are:

Required:

Round the fixed and variable overhead rates to two decimal places and use in subsequent computations. If required, round final answers to

the nearest dollar.

Compute the applied fixed overhead.

$

Compute the fixed overhead spending and volume variances.

Spending:

$x$ Favourable $$

Volume:

Compute the applied variable overhead.

$

$x$

Compute the variable overhead spending and efficiency variances.

Spending:

Favourable $$

Efficiency:

$x$

:$\text{'}V$

Kojima Company is planning to produce $2,400,000$ power drills for the coming year. The company uses direct labour hours to assign overhead to products.

Each drill requires $0\mathrm{.}4$ standard hour of labour for completion. The total budgeted overhead was $$1,982,900.$ The total fixed overhead budgeted for the

coming year is $$1,326,300.$ Predetermined overhead rates are calculated using expected production, measured in direct labour hours. Actual results for the

year are:

Required:

Round the fixed and variable overhead rates to two decimal places and use in subsequent computations. If required, round final answers to

the nearest dollar.

Compute the applied fixed overhead.

$

Compute the fixed overhead spending and volume variances.

Spending:

Volume:

Compute the applied variable overhead.

$

Compute the variable overhead spending and efficiency variances.

Spending:

Efficiency: