You Have Just Been Hired as the Controller of the Eastern

question 223

Essay

You have just been hired as the controller of the Eastern Division of Global Manufacturing.Performance records for last year are incomplete,with only the following data available:
$\begin{array}{|l|r|}\hline \text { Variable Overhead Rate } & \$ 3.00 \text { per direct labour hour } \\\hline \text { Budgeted Fixed Overhead } & \$ 84,800 \\\hline \text { Total Actual Overhead Cost } & \$ 262,500 \\\hline \text { Fixed overhead Budget Variance } & \$ 7,200 \text { unfavourable } \\\hline \text { Variable Overhead Efficiency Variance } & \$ 15,000 \text { unfavourable } \\\hline \text { Actual Direct Labour Hours Worked } & 55,000 \text { direct labour hours } \\\hline \text { Denominator Activity Level } & 53,000 \text { direct labour hours } \\\hline \text { Standard Hours per Unit } & 2 \text { direct labour hours } \\\hline\end{array}$
Required:
Prepare a complete analysis of manufacturing overhead for the past year.Indicate actual,standard,and denominator activity levels; variable overhead spending and efficiency variances; and fixed overhead budget and volume variances.

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Definitions:

Cell

The basic structural, functional, and biological unit of all living organisms, enclosed by a plasma membrane and containing organelles and genetic material.

Tissue Types

The human body contains four basic types of tissues: epithelial, connective, muscle, and nervous tissues, each serving specific functions.

Molecules

The smallest particle of a chemical substance that can exist independently while retaining the chemical properties of the substance, consisting of two or more atoms bonded together.

Atoms

Fundamental particles that make up everything, composed of a central nucleus encircled by electrons.