Question

can you explain the second set of required problems (REVISED ACTUAL O/H)?

259,500 346,000 270,000 GIVEN: BUDGETED O/H BUDGETED M/H (DRIVER) ACTUAL O/H ACTUAL M/H: JOB 110 JOB 111 JOB 112 JOB 113 JOBS 110, 111 & 112 WERE FINISHED JOB 112 WAS SOLD 88,000 140,800 52.800 70,400 REQUIRED: COMPLETE O/H APPLIED & ACTUAL O/H SCHEDULE: WIP FG COGS TOTAL ANSWER APPLIED VARIANCE ACTUAL 52,800 1,200 54,000 171,600 3,900 175,500 39,600 900 40,500 264,000 6,000 270,000 REQUIRED: REVISED ACTUAL O/H COMPLETE O/H APPLIED & ACTUAL O/H SCHEDULE: 245,000 WIP ANSWER APPLIED VARIANCE ACTUAL 52,800 (3,800) 49,000 171,600 (12,350) 159,250 39,600 (2,850) 36,750 264,000 (19,000) 245,000 FG COGS TOTAL

Answer 1

a.
Budgeted overhead rate:
Budgeted overhead rate/pre-determine overhead rate=budgeted overhead rate/budgeted machine hour
= $259500/346000 hours
= $0.75 per machinr hour
b.
Actual overhead rate:
Actual overhead rate=actual overhead /actual machine hours
=$270000/(88000+140800+52800+70400) hours
= $270000/352000hours
= $0.767 per machine hour
c.
In this question said job 110,111,112 were finished goods
Job 112 was sold
So , job 112 was in WIP condition
d.
Revised actual overhead rate:
Revised actual overhead rate=revised actual overhead /actual machine hours
1
Computation of overhead applied and actual overhead schedule
	APPLIED	VARIANCE	ACTUAL
WIP (job 113)	52800	1200	54000
	(70400*0.075)		(70400*0.76704)
FG(job110+111)	171600	3900	175500
	(140800+88000*0.75)		(140800+88000*0.76704)
COGS (job112)	39600	900	40500
	(52800*0.75)		(52800*0.76704)
TOTAL	264000	6000	270000
Computation of overhead applied and actual overhead schedule
	APPLIED	VARIANCE	ACTUAL
WIP (job 113)	52800	-3800	49000
	(70400*0.075)		(70400*0.69602))
FG(job110+111)	171600	-12350	159250
	(140800+88000*0.75)		(140800+88000*0.69602)
COGS (job112)	39600	-2850	36750
	(52800*0.75)		(52800*0.69602)
TOTAL	264000	-19000	245000