Evaluate the relevant overhead variances for department

Assignment Help Taxation

Reference no: EM1375508

The Milling Department uses standard machine hours to assign overhead to products. Budgeted volume for year was 36,000 machine hours. A flexible budget is used to set the overhead rate. Fixed overhead is budgeted to be $720,000 and variable overhead is predictable to be $10 per machine hour.

During the year, two products are milled. The given table summarizes operations.

Product 1

Units milled 10,500
Standard machine per unit 2
Actual machine hours used 23,000

Product 2
Units milled 12,000
Standard machine per unit 1
Actual machine hours used 13,000

Actual overhead during the year was $1.1 million.

Evaluate all the relevant overhead variances for department, and prepare a memo that explain what each one means.

Reference no: EM1375508

Questions Cloud

Decentralized architecture and a centralized architecture : What in your opinion is the difference among a decentralized architecture and a centralized architecture? What is an instance of a business decision that would be affected by the choice of the architecture?

Variable overhead price and efficiency variances. : Find what are fixed overhead price and production volume variances and evaluate the labor and variable overhead price and efficiency variances.

What extent is azul linhas areas brasileiras subsequent : To what extent is Azul Linhas Areas Brasileiras subsequent the five steps of the strategic management process? What is the greatest takeaway from this case in terms of strategic management

What are walmart''s competitive advantages : What are Walmart's competitive advantages and what strategies does it employment to acquire these competitive advantages?

Evaluate the relevant overhead variances for department : Evaluate all the relevant overhead variances for department, and prepare a memo that explain what each one means.

Distinguish between a variable cost and a fixed cost : Distinguish between a variable cost, a fixed cost, and a mixed cost. Identify a publicly traded, well-known company, and identify what you envision would be a variable cost

Inventory of transversal estrogen delivery patches : In which of the accounts shown is the inventory likely to be? At what point may the inventory be transferred to a separate inventory account

A man entered into a contract to buy a small business : A man entered into a contract to buy a small business from the enterer who had started it. Before completing the formalities the buyer erudite that the entrepreneur had taken a job with a larger rival company

Net amount of costs for the department : The human resources department costs are owed using the direct method and based on the number of employees, and the net amount of costs for the department is $187,000.

User Account

All Pages