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
Uniform Costing It is a general system utilizing agreed concepts, standard and principles accounting practices adopted via different entities in the similar industry to ensure

process costing new practices


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

FDP Company produces a variety of home security. Gary Price, the company’s president, is concerned with the fourth quarter market demand for the company’s products. Unless someth

how variable cost help in decision making.with suitable example

How relevant to the decision are the $800(000) initial cost of the project and the operating losses of $300(000)? Calculate the incremental liquidation cash flows for the abando

Methods of Labour Remuneration There Labour remuneration methods can be broadly classified into two factors as: i. Time rate or on the basis of the time spend in the factor

King Airlines King Airlines is one of many low-cost airlines in Europe. The managers want to expand the business and have an opportunity to purchase a second-hand plane to op

During the dinner hour, the distribution of the inter-arrival time of customers at Burger Barn is predictable to be as follows: Inter-arrival Time Probabi