Activity Index: Standard direct labour hours 2,000 3,200 3,600 4,000 Variable costs Indirect materials $ 4,000...

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Accounting

Activity Index: Standard direct labour hours 2,000 3,200 3,6004,000 Variable costs Indirect materials $ 4,000 $ 6,400 $ 7,200 $8,000 Indirect labour 2,300 3,680 4,140 4,600 Utilities 3,200 5,1205,760 6,400 Total variable 9,500 15,200 17,100 19,000 Fixed costsSupervisory salaries 1,000 1,000 1,000 1,000 Rent 3,000 3,000 3,0003,000 Total fixed 4,000 4,000 4,000 4,000 Total costs $13,500$19,200 $21,100 $23,000 The company applies total overhead on thebasis of direct labour hours at $6.00 per direct labour hour andthe standard hours per dining chair is 1/2 hour each. The company'sactual production was 5,800 dining chairs with 3,000 actual hoursof direct labour. Actual overhead was $18,200, of which $4,100 wasfixed. Required: a) Calculate the variable overhead budget andfixed overhead variances. Prepare the entries for manufacturingoverhead during the period and the entry to recognize the overheadvariances at the end of the period

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Activity Index Standard Direct Labor Hours 2000 3000 3600 4000 Variable Cost Indirect Material 400000 640000 720000 800000 Indirect Labor 230000 368000 414000 460000 Utilities 320000 512000 576000 640000 Total Variable 950000 1520000 1710000 1900000 Fixed Cost Supervisory Salaries 100000 100000 100000 100000 Rent 300000 See Answer

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