BUDGETED ACTUAL

Direct Labor Hours 260,000 248,300

Manufacturing Overhead
Fixed 585,000 578,400
Variable 1,092,000 1,039,940
1,677,000 1,618,340

Actual Overhead
Fixed 578,400
Variable 1,039,940 1,618,340
Applied Overhead (actual dl hours * predet rate) 1601535
UNDERAPPLIED 16,805

Budgeted Cost Total DL hours

Budgeted Fixed Cost 585,000 260,000
Budgeted Variable Cost 1,092,000 260,000
Total Budgeted Cost 1677000
Total DL hours 260,000
6.45

In short
Actual DL hours 248,300
Multiply: Predetermined rate (fixed portion)
Budgeted Fixed Cost 585,000
Divide: Total DL hours 260,000 2.25
Applied Fixed 558675
Less: Budgeted Fixed 585,000
Volume Variance (unfavorable) -26325

Actual DL hours 248,300

Multiply: Predetermined rate (variable portion)
Budgeted Variable Cost 1,092,000
Divide: Total DL hours 260,000 4.2
Budgeted Variable 1042860
Add: Budgeted Fixed 585000
Total Budgeted 1627860
Less: Total Actual 1,618,340
Spending Variance (favorable) 9520.00

Volume Variance (favorable) -26325

Spending Variance (favorable) 9520.00
-16805
 BUDGETED FIXED OVERHEAD IS NOT EQUAL TO THE ACTUAL FIXED OVERHEAD

ACTUAL>APPLIED
(actual dl hours
(budgeted cost/total dl hours) * predet rate)
Predetermined Rate Actual DL hours Applied Overhead Budgeted Overhead
2.25 248,300 558,675 585,000
4.2 248,300 1,042,860 1,042,860
1,601,535 1,627,860

6.45

BUDGETED FIXED 585,000

APPLIED VARIABLE 1,042,860
1,627,860
Actual Overhead Variances
578,400 -26,325 VOLUME VARIANCE (UNFAVORABLE)
1,039,940.00
1,618,340.00 9,520.00 SPENDING VARIANCE (FAVORABLE)
-16,805.00 NET VARIANCE (UNFAVORABLE)

Actual Overhead Variances

578,400 -26,325 VOLUME VARIANCE (UNFAVORABLE)
1,039,940.00
1,618,340.00 9,520.00 SPENDING VARIANCE (FAVORABLE)
-16,805.00 NET VARIANCE (UNFAVORABLE)
(budgeted fixed - applied fixed)

(total budgeted - total actual)

(budgeted fixed - applied fixed)

(total budgeted - total actual)

Actual Overhead
Fixed 348,000
Variable 637,880 985,880
Applied Overhead (actual dl hours * predet rate) 995880
OVERAPPLIED -10,000.00

Budgeted Cost Total DL hours

Budgeted Fixed Cost 348,000 120,000
Budgeted Variable Cost 684,000 120,000
Total Budgeted Cost 1032000
Total DL hours 120,000
8.6

In short
Actual DL hours 115,800
Multiply: Predetermined rate (fixed portion)
Budgeted Fixed Cost 348,000
Divide: Total DL hours 120,000 2.9
Fixed Applied 335820
Less: Fixed Actual 348,000
Volume Variance (unfavorable) -12180

Actual DL hours 115,800

Multiply: Predetermined rate (variable portion)
Budgeted Variable Cost 684,000
Divide: Total DL hours 120,000 5.7
Variable Applied 660060
Less: Variable Actual 637,880
Spending Variance (favorable) 22180

Volume Variance (unfavorable) -12180

Spending Variance (favorable) 22180.00
10000.00
applied>actual
(actual dl hours
(budgeted cost/total dl hours) * predet rate) (applied - actual)
Predetermined Rate Actual DL hours Applied Overhead Actual Overhead Variances
2.9 115,800 335,820 348,000 -12,180
5.7 115,800 660,060 637,880 22,180.00
995,880 985,880 10,000.00

8.6
VOLUME VARIANCE (UNFAVORABLE)
SPENDING VARIANCE (FAVORABLE)
NET VARIANCE (FAVORABLE)
Actual overhead
Fixed 101,200
Variable 214,000 315,200
Applied overhead 315000
Underapplied 200.00 ACTUAL > APPLIED

(budgeted cost/total dl hours)

Budgeted Cost Total MH hours Predetermined Rate
Budgeted Fixed Cost 1,200,000 240,000 5
Budgeted Variable Cost 2,400,000 240,000 10
Total Budgeted Cost 3600000
Total MH hours 240,000
15 15
 (actual dl hours
PLAN BASED ON OUTPUT * predet rate)
Actual MH hours Applied Overhead Budgeted Overhead Actual Overhead
21,000 105,000 100,000 101,200
21,000 210,000 210,000 214,000
315,000 310,000 315,200
Variances
5,000 no.30 VOLUME VARIANCE (FAVORABLE) (applied - budget)
-4,000 no.28 underapplied variable overhead (applied - actual)
-5,200 SPENDING VARIANCE (FAVORABLE) (budgeted - actual)
-200 NET VARIANCE (UNFAVORABLE)
Actual Overhead
Fixed 272,250
Variable 647,426.67 919,676.67
Applied Overhead (actual dl hours * predet rate) 925779
OVERAPPLIED -6,102.03

Budgeted Cost Total DL hours

Budgeted Fixed Cost 272250 165000
Budgeted Variable Cost 633600 165000
Total Budgeted Cost 905850
Total DL hours 165000
Predetermined Rate 5.49

In short
Actual DL hours 168,630
Multiply: Predetermined rate (fixed portion)
Budgeted Fixed Cost 272250
Divide: Total DL hours 165000 1.65
Fixed Applied 278240
Less: Fixed Actual 272,250
Volume Variance (favorable) 5990

Actual DL hours 168,630

Multiply: Predetermined rate (variable portion)
Budgeted Variable Cost 633600
Divide: Total DL hours 165000 3.84
Variable Applied 647539
Less: Variable Actual 647,427
Spending Variance (favorable) 112.53

Volume Variance (favorable) 5990

Spending Variance (favorable) 112.53
6102.53
applied>actual
(actual dl hours
(budgeted cost/total dl hours) * predet rate) (applied - actual)
Predetermined Rate Actual DL hours Applied Overhead Actual Overhead Variances
1.65 168,630 278,240 272,250 5,990
3.84 168,630 647,539 647,426.67 112.53
925,779 919,676.67 -6,102.03

5.49
VOLUME VARIANCE (FAVORABLE)
SPENDING VARIANCE (FAVORABLE)
NET VARIANCE (UNFAVORABLE)
 BUDGETED ACTUAL
Direct Labor Hours 60,000 62,400
Manufacturing Overhead
Fixed 42,000 42,000
Variable 168,000 171,100
210,000 213,100

Actual overhead
Fixed 42,000
Variable 171,100.00 213,100
Applied overhead 218400 actual dl hours * predet rate
Overapplied -5,300.00 applied>actual

(budgeted cost/total dl hours)

Budgeted Cost Total DL hours Predetermined Rate
Budgeted Fixed Cost 42,000 60,000 0.7
Budgeted Variable Cost 168,000 60,000 2.8
Total Budgeted Cost 210,000
Total DL hours 60,000
3.5 3.5

BUDGETED ACTUAL
Direct Labor Hours 60,000 62,400
Manufacturing Overhead
Fixed 42,000 40,000
Variable 168,000 173,100
210,000 213,100

Actual overhead
Fixed 40,000
Variable 173,100 213,100
Applied overhead 218400
Overapplied -5,300.00 applied>actual

(budgeted cost/total dl hours)

Budgeted Cost Total DL hours Predetermined Rate
Budgeted Fixed Cost 42,000 60,000 0.7
Budgeted Variable Cost 168,000 60,000 2.8
Total Budgeted Cost 210,000
Total DL hours 60,000
3.5 3.5
 (actual dl hours
* predet rate)
Actual DL hours Applied Overhead Actual Overhead Variances
62,400 43,680 42,000 1,680
62,400 174,720 171,100 3,620.00
218,400 213,100 5,300.00

(actual dl hours
* predet rate)
Actual DL hours Applied Overhead Budgeted Cost Actual Overhead
62,400 43,680 42,000 40,000
62,400 174,720 174,720 173,100
218,400 216,720 213,100
 VOLUME VARIANCE (FAVORABLE)
SPENDING VARIANCE (FAVORABLE)
NET VARIANCE (FAVORABLE)

VOLUME/ACTUAL HOURS
Variances BUDGETED = ACTUAL
1,680 VOLUME VARIANCE (FAVORABLE) 1,680
3,620
3,620.00 SPENDING VARIANCE (FAVORABLE) 5,300
5,300.00 NET VARIANCE (FAVORABLE) NOTE: IF VOLUME AND/OR TOTAL A
CHANGES, THE TOTAL VARIAN
OLUME/ACTUAL HOURS DIFFER
BUDGETED NOT EQUAL ACTUAL
1,680 VOLUME
3,620 SPENDING
5,300 TOTAL VARIANCE
LUME AND/OR TOTAL ACTUAL OVERHEAD
GES, THE TOTAL VARIANCES DIFFER
 BUDGETED ACTUAL Predetermined Rate
Direct Labor Hours 60,000 62,000
Manufacturing Overhead Fixed 42,000 42,000 0.7
Manufacturing Overhead Variable 168,000 171,100 2.8
Total 210,000 213,100 3.5
Applied 217000
OVERAPPLIED -3,900
budgeted fixed 42,000
applied fixed (62,000*.7) 43400
VOLUME VARIANCE 1,400
FAVORABLE

budgeted
fixed 42,000
variable (62,000*2.80) 173,600
total budgeted 215,600
less actual overhead 213,100
SPENDING VARIANCE 2,500
FAVORABLE

TOTAL VARIANCE 3,900

FIXED COST (BUDGETED = ACTUAL) FIXED COST (BUDGETED NOT EQUAL ACTUAL)
1,680 1,400 VOLUME
3,620 2,500 SPENDING