The fixed overhead price variance, Cost Accounting

DEF Municipality uses a standard absorption costing system to control the cost of one of its services, namely the supply of water to its constituents. The fixed budget for the reticulation process show a budgeted total overhead cost of R2,000,000 per period when 50,000 kiloliters of water is distributed, and R2,640,000 per period when 90,000 kiloliters is distributed.

In period 9 when the distribution was 65,000 kiloliters, total real  overhead was R2,450,000 (R1,250,000 fixed and R1,200,000 variable). The standard fixed overhead absorption rate is R24 per kiloliter.

Required:

a)            Using the high-low meathod, determine the following:

(i)            The budgeted variable overhead per kiloliter

(ii)           The budgeted fixed overhead per kiloliter

 

b)            Determine the following:

(i)            The total fixed overhead absorbed in period 9

(ii)           The fixed overhead price variance

(iii)          The fixed overhead volume variance

 

Posted Date: 3/19/2013 6:25:08 AM | Location : United States







Related Discussions:- The fixed overhead price variance, Assignment Help, Ask Question on The fixed overhead price variance, Get Answer, Expert's Help, The fixed overhead price variance Discussions

Write discussion on The fixed overhead price variance
Your posts are moderated
Related Questions
Important Points Regarding to the Variance Analysis Variance reporting concentrates on both with favourable and unfavourable variances. Normally unfavourable variances are pun

Support Department Cost Allocations. Riverside Furniture Company manufactures unfinished furniture for sale to retailers. Riverside has two support departments, Maintenance and Hu

Stores layout and location - Material Handling The layout of stores must ensure as a) For movement of material, ease of access out and in of stores b) The issue of peris

ADescribe the impact of different types of standards on motivations, and specifically, the likely effect on motivation of adopting the labor standard recommended for Geeta & Compan

In Lowe's Companies, Inc. 2012 Annual Report (Form 10-K) 1. Evaluate Lowe's investment in property, plant and equipment. Determine the following amounts as reported by Lowe's on it

METHODS OF COSTING : 1. Job costing :  Job costing is the essential costing technique appropriate to those industries somewhere the work consist of separate contracts, or batch

Managers need financial information to help them make decisions, communicate important information about their organization, and demonstrate fiscal responsibility to stakeholders.

Assignment of Variance in Variance Calculation In variances calculating, the calculations require to be detailed sufficient hence the responsibility for the variance can be a

Features and Procedures of Job costing Features of Job costing Product is against the customer's order and not on job stocks. Every job has its own characteristics and ne

Accounting Case Study: The Champlain Career Consulting Corporation ("CCCC") is owned by three Trent graduates. Incorporated in 2009, CCCC provides a wide-range of career plann