Overhead Controllable Variance: The overhead controllable variance is a type of overhead variance which is the variance of the overhead price. This variance refers to the difference arising between the real overhead which is incurred and the overhead which is planned or estimated for the allowed standard hours. Overhead Volume Variance: The overhead volume variance refers to the variance which arises when there is difference between the normal hours of working and the standard hours which are estimated. This is the difference between the production overhead which is estimated and the production overhead which is actually incurred. The difference of the production overhead is multiplied by the given fixed rate of overhead to calculate the overhead volume variance. To Determine : The total actual overhead cost.

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Answer 1

Question

Chapter 11, Problem 11.24E

(a) (1)

To determine

Overhead Controllable Variance: The overhead controllable variance is a type of overhead variance which is the variance of the overhead price. This variance refers to the difference arising between the real overhead which is incurred and the overhead which is planned or estimated for the allowed standard hours.

Overhead Volume Variance: The overhead volume variance refers to the variance which arises when there is difference between the normal hours of working and the standard hours which are estimated. This is the difference between the production overhead which is estimated and the production overhead which is actually incurred. The difference of the production overhead is multiplied by the given fixed rate of overhead to calculate the overhead volume variance.

To Determine: The total actual overhead cost.

(2)

To determine

The actual variable overhead cost.

(3)

To determine

The variable overhead cost applied.

(4)

To determine

The fixed overhead cost applied.

(5)

To determine

The overhead volume variance.

(b)

To determine

The number of loans were processed.

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The loan department of Calgary Bank uses standard costs to determine the overhead cost of processing loan applications. During the current month, a fire occurred, and the accounting records for the department were mostly destroyed. The following data were salvaged from the ashes. Standard variable overhead rate per hour $9 Standard hours per application 3 Standard hours allowed 4,980 Standard fixed overhead rate per hour $7 Actual fixed overhead cost $35,630 Variable overhead budget based on standard hours allowed $18,300 Fixed overhead budget $35,630 Overhead controllable variance $1,000 U (a)Determine the following. (1) Total actual overhead cost $ (2) Actual variable overhead cost $ (3) Variable overhead costs applied $ (4) Fixed overhead costs applied $ (5) Overhead volume variance $ (b)Determine how many loans were processed.

Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Staff hours Staff costs General operating costs Eastside 25,000 $ 330,000 8,100 $ 99,000 Required A Required B Westside 6,250 $ 220,000 2,700 $ 99,000 Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Predetermined overhead rate Total 31,250 $ 550,000 10, 800 Complete this question by entering your answers in the tabs below. $ 198,000 $ 330,000 per client Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. Note: Round your…

Harmon Recycling Services (HRS), a not-for-profit organization, has two drop-off centers, Westside and Eastside. Data for the expected operation in the next quarter follow. Clients Revenues Eastside 25,000 $360,000 8,100 Westside 6,250 $ 240,000 2,700 $ 99,000 $ 108,000 Staff hours Staff costs General operating costs Required: a. Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. b. Based on the rates computed in requirement (a), what is the expected surplus (revenues less costs) for each center? Required A Required B Complete this question by entering your answers in the tabs below. Predetermined overhead rate Total 31,250 $ 600,000 10,800 $ 207,000 $360,000 Compute the predetermined overhead rate used to apply general operating costs to the two centers assuming HRS uses the number of clients to allocate general operating costs. Note: Round your answer to 2…

Answer 2

Question

Chapter 11, Problem 11.24E

(a) (1)

To determine

Overhead Controllable Variance: The overhead controllable variance is a type of overhead variance which is the variance of the overhead price. This variance refers to the difference arising between the real overhead which is incurred and the overhead which is planned or estimated for the allowed standard hours.

Overhead Volume Variance: The overhead volume variance refers to the variance which arises when there is difference between the normal hours of working and the standard hours which are estimated. This is the difference between the production overhead which is estimated and the production overhead which is actually incurred. The difference of the production overhead is multiplied by the given fixed rate of overhead to calculate the overhead volume variance.

To Determine: The total actual overhead cost.

(2)

To determine

The actual variable overhead cost.

(3)

To determine

The variable overhead cost applied.

(4)

To determine

The fixed overhead cost applied.

(5)

To determine

The overhead volume variance.

(b)

To determine

The number of loans were processed.

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Answer 3

Question

Chapter 11, Problem 11.24E

(a) (1)

To determine

Overhead Controllable Variance: The overhead controllable variance is a type of overhead variance which is the variance of the overhead price. This variance refers to the difference arising between the real overhead which is incurred and the overhead which is planned or estimated for the allowed standard hours.

Overhead Volume Variance: The overhead volume variance refers to the variance which arises when there is difference between the normal hours of working and the standard hours which are estimated. This is the difference between the production overhead which is estimated and the production overhead which is actually incurred. The difference of the production overhead is multiplied by the given fixed rate of overhead to calculate the overhead volume variance.

To Determine: The total actual overhead cost.

(2)

To determine

The actual variable overhead cost.

(3)

To determine

The variable overhead cost applied.

(4)

To determine

The fixed overhead cost applied.

(5)

To determine

The overhead volume variance.

(b)

To determine

The number of loans were processed.

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Answer 4

Question

Chapter 11, Problem 11.24E

(a) (1)

To determine

Overhead Controllable Variance: The overhead controllable variance is a type of overhead variance which is the variance of the overhead price. This variance refers to the difference arising between the real overhead which is incurred and the overhead which is planned or estimated for the allowed standard hours.

Overhead Volume Variance: The overhead volume variance refers to the variance which arises when there is difference between the normal hours of working and the standard hours which are estimated. This is the difference between the production overhead which is estimated and the production overhead which is actually incurred. The difference of the production overhead is multiplied by the given fixed rate of overhead to calculate the overhead volume variance.

To Determine: The total actual overhead cost.

(2)

To determine

The actual variable overhead cost.

(3)

To determine

The variable overhead cost applied.

(4)

To determine

The fixed overhead cost applied.

(5)

To determine

The overhead volume variance.

(b)

To determine

The number of loans were processed.

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Answer 5

Chapter 11, Problem 11.24E

(a) (1)

To determine

Overhead Controllable Variance: The overhead controllable variance is a type of overhead variance which is the variance of the overhead price. This variance refers to the difference arising between the real overhead which is incurred and the overhead which is planned or estimated for the allowed standard hours.

Overhead Volume Variance: The overhead volume variance refers to the variance which arises when there is difference between the normal hours of working and the standard hours which are estimated. This is the difference between the production overhead which is estimated and the production overhead which is actually incurred. The difference of the production overhead is multiplied by the given fixed rate of overhead to calculate the overhead volume variance.

To Determine: The total actual overhead cost.

(2)

To determine

The actual variable overhead cost.

(3)

To determine

The variable overhead cost applied.

(4)

To determine

The fixed overhead cost applied.

(5)

To determine

The overhead volume variance.

(b)

To determine

The number of loans were processed.

Answer 6

Chapter 11, Problem 11.24E

(a) (1)

To determine

Overhead Controllable Variance: The overhead controllable variance is a type of overhead variance which is the variance of the overhead price. This variance refers to the difference arising between the real overhead which is incurred and the overhead which is planned or estimated for the allowed standard hours.

Overhead Volume Variance: The overhead volume variance refers to the variance which arises when there is difference between the normal hours of working and the standard hours which are estimated. This is the difference between the production overhead which is estimated and the production overhead which is actually incurred. The difference of the production overhead is multiplied by the given fixed rate of overhead to calculate the overhead volume variance.

To Determine: The total actual overhead cost.

Answer 7

Chapter 11, Problem 11.24E

(a) (1)

To determine

Overhead Controllable Variance: The overhead controllable variance is a type of overhead variance which is the variance of the overhead price. This variance refers to the difference arising between the real overhead which is incurred and the overhead which is planned or estimated for the allowed standard hours.

Overhead Volume Variance: The overhead volume variance refers to the variance which arises when there is difference between the normal hours of working and the standard hours which are estimated. This is the difference between the production overhead which is estimated and the production overhead which is actually incurred. The difference of the production overhead is multiplied by the given fixed rate of overhead to calculate the overhead volume variance.

To Determine: The total actual overhead cost.

Answer 8

(2)

To determine

The actual variable overhead cost.

Answer 9

(2)

To determine

The actual variable overhead cost.

Answer 10

(3)

To determine

The variable overhead cost applied.

Answer 11

(3)

To determine

The variable overhead cost applied.

Answer 12

(4)

To determine

The fixed overhead cost applied.

Answer 13

(4)

To determine

The fixed overhead cost applied.

Answer 14

(5)

To determine

The overhead volume variance.

Answer 15

(5)

To determine

The overhead volume variance.

Answer 16

(b)

To determine

The number of loans were processed.

Answer 17

(b)

To determine

The number of loans were processed.

Answer 18

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Answer 19

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Answer 20

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Answer 21

Ch. 11 - (a) Standard costs are the expected total cost of...Ch. 11 - (a) Explain the similarities and differences...Ch. 11 - Standard costs facilitate management planning....Ch. 11 - Standard costs facilitate management planning....Ch. 11 - Prob. 5Q Ch. 11 - What factors should be considered in setting (a)...Ch. 11 - The objective in setting the direct labor quantity...Ch. 11 - How is the predetermined overhead rate determined...Ch. 11 - What is the difference between a favorable cost...Ch. 11 - In each of the following formulas, supply the...

Solution Summary: The author explains overhead controllable variance, which is the variance of the overhead price, and overhead volume variance.

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The actual variable overhead cost.

The variable overhead cost applied.

The fixed overhead cost applied.

The overhead volume variance.

The number of loans were processed.

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