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Fixed overhead $72 000, Variable overhead $3 per direct labour hour, Budgeted direct labour hours: 15 000,The actual fixed overhead incurred was $76 000 and the variable overhead amounted to $42 600. The actual direct labour hours for the years were 16 000.a) calculate the total recovered fixed overhead and any under/over recovery.
b) analyse the variance into capacity and expenditure variances for variable overhead, and into efficiency and expenditure variances for variable overhead.
The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $24,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to:
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For each situation, discuss why the proceduresare used and how they provided effective internal control.
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