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Required:: Variable Overhead Rate Budgeted Fixed FOH Applied FOH Cost

Adam Company has a fixed overhead (FOH) rate of Rs. 4 per hour. The budgeted overhead was Rs. 23,000 for 4000 hours and Rs. 27,000 for 6000 hours. Actual FOH costs were Rs. 24,000 for actual volume of 7,500 hours. Information is provided to calculate variable overhead rate, budgeted fixed FOH, normal volume, applied FOH cost, over/under applied FOH, idle capacity variance, and cost spending capacity variance.

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42 views1 page

Required:: Variable Overhead Rate Budgeted Fixed FOH Applied FOH Cost

Adam Company has a fixed overhead (FOH) rate of Rs. 4 per hour. The budgeted overhead was Rs. 23,000 for 4000 hours and Rs. 27,000 for 6000 hours. Actual FOH costs were Rs. 24,000 for actual volume of 7,500 hours. Information is provided to calculate variable overhead rate, budgeted fixed FOH, normal volume, applied FOH cost, over/under applied FOH, idle capacity variance, and cost spending capacity variance.

Uploaded by

abbas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Adam Company’s FOH rate is Rs.4 per hour.

Budgeted
overhead for 4000 hours per month is Rs.23,000 and at 6000
hours is Rs.27,000. Actual FOH for the month was Rs.24,000
and actual volume was 7,500 hours.
REQUIRED:
(a) Variable Overhead Rate (b) Budgeted Fixed FOH

(c)Normal Volume (d) Applied FOH Cost

(e)Over or under applied FOH (f) Idle Capacity Variance

(g)Cost Spending Capacity


Variance

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