Acc102 Principles of Managerial Accounting: Final Project – John Company

Acc102 Principles of Managerial Accounting

Final Project

Assume the following data for John Company's August operations. Standard overhead per direct labor hour based on normal monthly capacity of 30,000 hours:

Fixed( $270,000/30,000 hours) $9

Variable ($660,000/30,000 hours) 22 $31

Direct labor hours actually worked in August $28,000 hours

Actual overhead cost incurred ( including $270,000

fixed costs) $824,000

(a) Compute the amount of overhead applied to Work-in-Process during August. $_______________

(b) Compute the total manufacturing overhead budgeted based on hours worked during August. $_______________

(c) Compute the overhead spending variance for August. Indicate whether favorable (F) or unfavorable (U). $_______________

(d) Compute the overhead volume variance for August. Indicate whether favorable (F) or unfavorable (U). $_______________
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