Managerial Accounting. Hard Questions for Students

Posted on 2013-11-28 16:58:00 in Management by MRS A

I am not lazy or something... I love accounting, but I am having difficulties with this homework.

The loan department of Calgary Bank uses standard costs to determine the overhead cost of processing loan applications. During the current month, a fire occurred, and the accounting records for the department were mostly destroyed. The following data were salvaged from the ashes.



Standard variable overhead rate per hour $6

Standard hours per application 2

Standard hours allowed 3,080

Standard fixed overhead rate per hour $7

Actual fixed overhead cost $22,379

Variable overhead budget based on standard hours allowed $19,000

Fixed overhead budget $22,379

Overhead controllable variance $ 1,020 U



What is



A) Total actual overhead cost

B) Actual variable overhead cost

C) Variable overhead cost applied

D) Fixed overhead cost applied

E) Overhead volume variance

F) Number of loans processed _____ loans processed

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