Problem 24:

Security HR Assembly Finishing

# of employees 40 60 200 300
Cost 500,000 1,800,000

Direct Method:
Security HR Assembly Finishing
Cost 500,000 1,800,000
-500,000 200000 300000
1,800,000 720000 1080000
920000 1380000

Step Method:
Security HR Assembly Finishing
Cost 500,000 1,800,000
133,333.33 -1,800,000 666,666.67 1,000,000.00
633,333.33 253,333.33 380,000.00
920,000.00 1,380,000.00

Problem 25:
Direct Method:
Maintenance Security Assembly Finishing
Cost 900,000 500,000
-900,000 600,000.00 300,000.00
-500,000 210,526.32 289,473.68
810,526.32 589,473.68

Step Method:
Maintenance Security Assembly Finishing
Cost 900,000 500,000
-900,000 90000 540000 270000
590,000 333,333.33 166,666.67
873,333.33 436,666.67
Recoprocal Method:
Assume: A=900,000+5%B
B=500,000+10%A

A=900,000+5%(500,000+10%A) B=500,000+10%A
A=900,000+ 25,000+0.5%A B=500,000+10%(929,648.24)
99.5%A= 925,000 B=500,000+92,964.82
99.5% 99.5% B= 592964.82
A = 925,000/99.5%
A= 929,648.24

Maintenance Security Assembly Finishing

Cost 900,000 500,000
929,648.24 92,964.82 557,788.94 278,894.47
29,648.24 592,964.82 237,185.93 326,130.65
557,788.94 605,025.13
PROBLEM 26:
DL hours footage #of employees
GFA FM FC Fabrication Assembly
cost 160,000.00 203,200.00 240,000.00 6,730,000.00 4,850,000.00
160,000.00 90,000.00 70,000.00
203,200.00 111,760.00 91,440.00
240,000.00 140,000.00 100,000.00
7,071,760.00 5,111,440.00
437,500.00
11.68

PROBLEM 3:

REQ.1:
2520000/1800000=1.4
REQ2:
1740000*1.4= 2436000

REQ3: FOH rate REQ4: applied FOH

fabricating 1050k/600k =1.75 630k*1.75= 1102500
machining 1200k/300k= 4 324k*4= 1296,000
assembly 270k/900k= .30 786k*.30 = 235000

LETTER C:
PLANT WIDE OH rate:
actual FOH 2,592,000.00
applied FOH 2,436,000.00
156,000.00 Under

Departmental: actual applied

fabricating 630k*1.75= 1102500 1,080,000.00 1,102,500.00 - 22,500.00 over
machining 324k*4= 1296,000 1,260,000.00 1,296,000.00 - 36,000.00 over
assembly 786k*.30 = 235000 252,000.00 235,000.00 17,000.00 under
problem 4:

REQ1: REQ2:
FOH 325K+175K =500K assemby 325k/15k= 21.67
Sol: finishing 175k/2k=87.5
500k/5k =100 per unit

problem 5:

REQ1: REQ3:
Sewing 1204k/130k= 8.6 Sewing 220*8.6 =1892
Cutting 1470k/840k= 175% Cutting 1360*175%= 2380
DM used 940+664 = 1604
REQ2: DL used 580+0360 =1940
Sewing 220*8.6 =1892 TOTAL COST 7,816.00
Cutting 1360*175%= 2380 divide by 100 units
4,272.00 PER UNIT COST 78.16 per unit

REQ4: ACTUAL FOH APPLIED FOH

Sewing 130K*8.6 =1118000 1,140,000.00 1,118,000.00 22,000.00 UNDER
Cutting 872K*175% =1526000 1,500,000.00 1,526,000.00 - 26,000.00 OVER
PROBLEM 6:
problem 14:
210K/90K =2.33per hour
210k/2000=. REQ1:
250K+82K = 332K
332K/8K = 41.5
problem 7:
REQ2:
Req1 : 7500*32
FOH rate = 1800k/150k = 12 per hr. 7500*12

REq2:
Actual FOH 1700000
applied 120k * 12 pr hr. =1440000
260000 under REQ3:
req3: SPENDING VARIANCE
COGS 260,000.00 Actual FOH
FOH 260000 less: BAAH
req4: fixed FOH budget
COGS 182,000.00 Std. Var. FOH
FG 65,000.00
WIP 13,000.00
FOH 260000

problem 8:

req1 : req5:
FOH rate = 40000+(P2*5200) 50000
50,400/5k = 10.08 actual FOH 56000
FOH rate = 10.08 Budgeted
fixed 40000
req2: std Variable 10400
5200*10 = 52,000
req3:
Job 01 1500*10 15,000.00
job 02 2000*10 20,000.00
job 03 1700*10 17,000.00

req4:
applied FOH 52000
Actual FOH 56000
-4000 under

promlem 9; Problem 10:

req1: Req1:
fixed FOH 80,000.00 DLH planned 360k/.30 = 1 200 000
est. Var. FOH (100000 *2 ) 200,000.00 sol: 360k/1200000 = .30
Total estimated FOH 280,000.00 Req2:
actual DLH 363k/.30 = 1 210 000
280,000 /100000= 2.8 per unit sol: 1,210,000*.30 = 363,000
2.8 *98,000 =274,400
applied FOH = 274,400
Problem 11:
req2:
applied FOH 274,400.00 a. 60,000+(.80 * 120k) = 156,000
actual FOH 265,000.00 b. 65,000 +(.80 *200K) = 225,000
9,400.00 over b. 65,000 +(.80 *220K) = 241,000
req3:
Problem 12:
Actual FOH 265,000.00 Est. FOH
Budget allow. fixed 400,000
fixed FOH budget variable 100,000 (25k*4)
Std. Var FOh 500,000
Predetermined FOH rate = 500,000/25,000 = P20
 Problem 13:
Req1: variable rate per hour

1,200k-1,000k
100k-80k
*= 200,000/ 20,000
*=10 per Mh

Req2: Over-under applied OH

10pMh * 100,000 = 1,000,000

1,200,000-1,000,000 = 200,000
fixed OH 200,000

applied FOH 1,200,000

actual FOH 1,050,000
over applied 150,000
problem 14:

req 3: Volume variance

250K+82K = 332K
332K/8K = 41.5 Budgeted FOH based on capacity used
fixed 320,000.00
Variable 90,000.00 410,000.00
240,000.00 Applied FOH
90,000.00 Fixed 240,000.00
330,000.00 Variable 90,000.00 330,000.00
/ 8,000 80,000.00
41.25

SPENDING VARIANCE
332000

fixed FOH budget 320000

Std. Var. FOH 90000 410000
78000 Unfavorable

problem 15:
REQ1: OVER-UNDER
Actual FOH (3,132k+ 5,740,920) 8,872,920.00
Applied FOH
fixed (1,042,200*2.9) 3,022,380.00
Variable(1,042,200*5.7) 5,940,540.00 8,962,920.00
- 90,000.00 OVER
REQ2: SPENDING VARIANCE
Actual FOH (3,132k+ 5,740,920) 8,872,920.00
Less: BAAH
fixed FOH budget(1,080k*2.9) 3,132,000.00
 Std. Var. FOH(1,042,200*5.7) 5,940,540.00 9,072,540.00
- 199,620.00 FAVORABLE
req3: VOLUME VARIANCE
BAAH
fixed FOH budget(1,080k*2.9) 3,132,000.00
Std. Var. FOH(1,042,200*5.7) 5,940,540.00 9,072,540.00
Applied FOH
fixed (1,042,200*2.9) 3,022,380.00
Variable(1,042,200*5.7) 5,940,540.00 8,962,920.00
109,620.00 UNFAVORABLE

PROBLEM 16:

REQ1: PFOH REQ4: BUDGET OH VARIANCE

* 1200K/600K = 2 Actual OH
360k/.30 = 1 200 000 * 2+ 2 per DLh Less: BAAH
/1200000 = .30 *= 4 Fixed budget FOH(600k*2)
Std. Varible FOH(640k*2)
363k/.30 = 1 210 000 req2: FOH applied
000*.30 = 363,000 fixed (640k*2) 1,280,000.00
variable(640k*2) 1,280,000.00
2,560,000.00
req3: over-under
Actual 2,498,000.00
= 156,000 Applied 2,560,000.00
- 62,000.00 OVER

Problem 17:

Company Standard Fixed Total budgeted

cost Per unit Fixed cost
A 10.00 1,000,000.00
ate = 500,000/25,000 = P20 per Mh B 3.00 300,000.00
C 2.00 200,000.00
D 7.00 700,000.00
 PROBLEM 18:
req3:
actual FOH 1,050,000 directmethod: MAINTENANCE
BAAH 93,500.00
Fixed 200,000 93,500.00
Std. Var. 1.50* 84k 126000

STEP method: MAINTENANCE

finding actual machine hour 93,500.00
93,500.00
1M/80k =12.5
1050k/12.5 =84k

ALGEBRAIC meth MAINTENANCE

93,500.00
100,000.00
6,500.00

ASSUME:
A= 93500 +10%bB
B=45000+ 20%A
 PROBLEM 19:

DIRECT METHOD PERSONNEL SECURITY

1,000,000.00 400,000.00
1,000,000.00
400,000.00

foh RATE
unfavorable
STEP METHOD PERSONNEL SECURITY
1,000,000.00 400,000.00
1,000,000.00 100,000.00
500,000.00

ALGEBRAIC METHOD PERSONNEL SECURITY

1,000,000.00 400,000.00
1,102,272.73 110,227.27
73,863.63 738,636.34
28,409.09 28,409.09
: BUDGET OH VARIANCE
2,498,000.00

budget FOH(600k*2) 1,200,000.00

arible FOH(640k*2) 1,280,000.00 2,480,000.00
18,000.00 Unfavorable
req5: Idle capacity
Budgeted FOH based on capacity
Fixed budget FOH(600k*2) 1,200,000.00
Std. Varible FOH(640k*2) 1,280,000.00 2480000
Applied FOH
fixed(640k*2) 1,280,000.00
Varibale (640k*2) 1,280,000.00 2560000
-80000 Favorable

Actual Idle Capacity FINDING ACTUAL PRODUCTION

production Variance *= normal capacity + (Idle variance/per unit)
105,000.00 50,000.00 F FINDING IDLE CAPACITY VARIANCE
115,000.00 45,000.00 F *=per unit*actual production - budgeted cost
90,000.00 20,000.00 U
110,000.00 70,000.00 F
UTI MIXING ASSEMBLY
45,000.00
46,750.00 46,750.00
45,000.00 15,000.00 30,000.00
61,750.00 76,750.00
UTI MIXING ASSEMBLY
45,000.00
18,700.00 37,400.00 37,400.00
63,700.00 21,233.33 42,466.67
58,633.33 79,866.67

UTI MIXING ASSEMBLY

45,000.00
20,000.00 40,000.00 40,000.00
65,000.00 19,500.00 39,000.00
59,500.00 40,000.00

A= 93,500+ 10%(45000+ 20%A) B= 45000+ 20%A

A= 93,500+ 4500 +2%A B=45000+ 20%(100,000)
98%A =98,000 B= 65,000
A= 98,000/98%
A= 100,000
 MAINTANCE CUTTING SEWING FINISHING
100,000.00 800,000.00 1,200,000.00 600,000.00
375,000.00 500,000.00 125,000.00
150,000.00 100,000.00 150,000.00
100,000.00 50,000.00 25,000.00 25,000.00
1,375,000.00 1,825,000.00 900,000.00
/ 40,000 / 60,000 / 20,000
34.38 30.42 45.00

MAINTANCE CUTTING SEWING FINISHING

100,000.00 800,000.00 1,200,000.00 600,000.00
100,000.00 300,000.00 400,000.00 100,000.00
55,555.56 166,666.67 111,111.11 166,666.67
255,555.56 127,777.78 63,888.89 63,888.89
1,394,444.45 1,775,000.00 930,555.56
/ 40,000 / 60,000 / 20,000
34.86 29.58 46.53

MAINTANCE CUTTING SEWING FINISHING

100,000.00 800,000.00 1,200,000.00 600,000.00
110,227.27 330,681.82 440,909.09 110,227.27
73,863.63 221,590.90 147,727.27 221,590.90
284,090.90 113,636.36 56,818.18 56,818.18
1,465,909.08 1,845,454.54 988,636.36
/ 40,000 / 60,000 / 20,000
36.65 30.76 49.43

Solution:
 ASSUME
A= 1,000,000+ 10%B+10%C B= 400,000+ 10%A+ 10%C
B=400,000+ 10%A+ 10%C B= 400,000+ 10%(1,000,000+ 10%B+10%C)+ 10%C
C=100,000+ 10%A+10%B B= 400,000+ 100,000+1%B+1%C+10%C
99%B= 500,000+11%C

FIND C: C= 100,000+ 10%A+10%B

C= 202,020.20+11.11111%B C= 100,000+10%(1,000,000+ 10%B+10%C)+ 10%B
C= 202,020.20+11.11111%(738,636.34) C= 100,000+ 100,000 +1%B+1%C+10%B
C= 202,020.20+ 82,070.70 99%C= 200,000+11%B
C= 284090.90 C=200,000+ 11%B/ 99%
C= 202,020.20+11.11111%B
A= 1,000,000+ 10%B+10%C
A= 1,000,000+ 10%(738,636.34)+10%(284,090.90) 99%B= 500,000+11%C
A= 1,000,000+ 73863.63+28409.09 99%B= 500,000+11%(202,020.20+11.11111%B)
1,102,272.73 99%b= 500,000+222,222.22+ 1.22222%B
97.77778%B= 722,222.22+/97.77778%
B= 738,636.34

nce/per unit)

budgeted cost
%B+10%C)+ 10%C

%B+10%C)+ 10%B

0+11.11111%B)