Question Details

(Solved) (Latest ver. Aug 2020) - NPC Overhead variances

Brief item decscription

Item details:


NPC developed its overhead application rate from the annual budget. The budget is based on an expected total output of 720,000 units requiring 3,600,000 machine hours. The company is able to schedule production uniformly throughout the year.
A total of 66,000 units requiring 315,000 machine hours were produced during May. Actual overhead costs for May amonted to 375,000. The actual costs, as rcompared to the annual budget and to 1/12 of the annual budget are:

Total per unit per machine monthly acctual
Amount hours budget cost for May
Variable overhead:
indirect material...1,224,000 1.70 0.34 102,000 111,000
indirect labour........900,000 1.25 0.25 75,000 75,000
Fixed overhead:
supervision...........648,000 0.90 0.18 54,000 51,000
utilities..................540,000 0.75 0.15 45,000 54,000
depreciation..........1,008,000 1.40 0.28 84,000 84,000
Total: 4,320,000 6.00 1.20 360,000 375,000

1. Prepare a schedule showing the following amounts for NPC in May.
a. Applied overhead costs
b.Variable overhead spending variance
c.fixed overhead budget variance
d.variable overhead efficiency variance
e.fixed overhead volume variance
2.draw a graph to depict the variable overhead variances.


About this question:

This question was answered on: Sep 16, 2020

PRICE: $11.5 (18.37 KB)

Buy this answer for only: $11.5

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now