16.23 Flexible budgets, variance analysis.
(15–25 min)
1
Budgeted hours allowed
Budgeted DLH
per unit of output
Budgeted actual output
3,600,000
= 5 hours Budgeted DLH allowed for May output
= 66,000 units × 5 = 330,000
Allocated total MOH = 330,000 × Total MOH rate per hour
= 330,000 × NKr 1.20 = NKr 396,000
2
, 3, 4, 5 See solution to Exercise 16.18.
Variable overhead rate per DLH = NKr 0.25 + NKr 0.34 = NKr 0.59
Fixed overhead rate per DLH = NKr 0.18 + NKr 0.15 + NKr 0.28 =
NKr
0.61
Fixed overhead budget for May = (NKr 648,000 + NKr 540,000 +
NKr 1,008,000) ÷ 12
= NKr 2,196,000 ÷ 12 = NKr 183,000 Using the format of Exhibit 16.3 in Chapter 16 for variable overhead and then fixed overhead Actual variable overhead NKr 75,000 + NKr 111,000 = NKr 186,000 Actual fixed overhead NKr 51,000 + NKr 54,000 + NKr 84,000 = NKr 189,000 An overview of the variance analysis using the block format in the text is
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