The data of Hill processing company for the months of June, July and August 2019 is as
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Question:
2019 is as under:-
Data of June 2019
Idle capacity variance Zero
Spending variance Rs. 3,000 Dr.
Actual FOH Rs. 35,000
Output 4,000 tons
Data of July 2019
Idle capacity variance Rs. 4,000 Dr.
Spending variance Zero
Actual FOH Rs. 28,000
Output 3,000 tons
Data of August 2019
Actual FOH Rs. 35,500
Output 4,500 tons
*Note: While calculating Fixed Factory Overhead & Fixed Rate, only High
activity level will be taken into consideration.
Required:
1) Budgeted Factory Overhead for capacity attained of 4,500 tons.
2) Applied Factory Overhead in August 2019.
3) Budgeted variance and Volume variance for August 2019.
Related Book For
Accounting Business Reporting For Decision Making
ISBN: 9780730363415
6th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver
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