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Cost Accounting - Overhead variances

Please help me complete the attached problems:

17.30

Electricity use 30 KWH per patient-day
Electric rate $0.12 per KWH
Fixed monthly electricity charge $1,250 per month

a. Flexible budget formula Variable per KWH Fixed per month
Electricity cost =

b. Columnar flexible budget, patient-days 30,000 40,000 50,000
Variable electricity cost
Fixed electricity cost
Total electricity cost

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17.47

Variable overhead spending variance $100 U
Fixed overhead spending variance 450 U
Flexible budgeted variable overhead $32,100
at 10,700 direct labor hours
Direct labor hours worked 10,600 hours
Total actual overhead $54,350
Fixed overhead application rate base 11,000 hours

Variance analysis Actual Spending or budget Variance Budget at actual inputs Efficiency or Volume variance Flexible budget
Variable overhead
Fixed overhead

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This responds to problems for Rocky Mountain Community Hospital and Rainbow Greeting Cards, ...

Solution Summary

This responds to problems for Rocky Mountain Community Hospital and Rainbow Greeting Cards, Inc. Your response is in excel, showing how to get the flexible budget and giving you a diagram useful in analyzing the overhead variances. This requires a bit of detective work and so a side analysis is shown so you can see how to solve the puzzle of "missing pieces."

$2.19