Essay About Wheel Assembly  Parts And 231,200U  Overhead

Mile High Cycles
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Mile High CyclesThe following are the tables used to solve the problem.Budgeted CostsFrame AssemblyBudgetedActualVariance Steel tubing($3,300,000/10,000)*10,800 = $3,564,000$3,564,000$3,572,100$8,100UPaint($25,000/10,000)*10,800 = $27,000$27,000$28,187$1,187ULabor($1,500,000/10,000)*10,800 = $1,620,000$1,620,000$1,528,050-$91,950FTotal frame($4,825,000/10,000)*10,800 = $5,211,000$5,211,000$5,128,337-$82,663F  Wheel assembly  Parts($1,200,000/10,000)*10,800 = $1,296,000$1,296,000$1,317,600$21,600URework parts$0$25,000$25,000ULabor($65,000/10,000)*10,800 = $70,200$70,200$74,250$4,050UTotal wheel($1,265,000/10,000)*10,800 = $1,366,200$1,366,200$1,416,850$50,650U  Final assembly  Parts($3,500,000/10,000)*10,800 = $3,780,000$3,780,000$3,963,600$183,600URework parts$0$45,000$45,000ULabor($105,000/10,000)*10,800 = $113,400$113,400$116,000$2,600UTotal final assembly($3,605,000/10,000)*10,800 = $3,893,400$3,893,400$4,124,600$231,200U  Overhead costs  Rent$250,000$250,000$250,000$0-Office staff$100,000$100,000$100,000$0-Depreciation$100,000$100,000$100,000$0-Variable Overhead[((2/3)*$750,000)/10,000]*10,800 = $540,000$540,000$600,000$60,000UFixed Overhead(1/3)*$750,000 = $250,000$250,000$250,000$0-Total overhead($250,000+$100,000+$100,000+$540,000+$250,000) = $1,240,000$1,240,000$1,300,000$60,000U  Total Annual Costs($5,211,000+$1,366,200+$3,893,400+$1,240,000) = $11,710,600$11,710,600$11,969,787$259,187UPredetermined rate per unit($1,200,000/10,000) = $120FOH Applied(10,800*$120) = $1,296,000Total FOH Variance($1,300,000-$1,296,000) = $4,000UVolume Variance($1,296,000-$1,240,000) = $56,000FSpending Variance($1,240,000-$1,300,000) = -$60,000UStd PriceAct PriceStd QtyAct QtyUsage Variance Price VarianceTotal Variance Frame Assembly      Steel tubing$30.00$31.50(110,000/10,000)*10,800 = 118,800   113,400 -$162,000.00F$170,100.00U$8,100.00UPaint$20.00$20.50(1,250/10,000)*10,800 = 1,350       1,375 $500.00U$687.50U$1,187.50ULabor$15.00$15.25(100,000/10,000)*10,800 = 108,000   100,200 -$117,000.00F$25,050.00U-$91,950.00FTotal frame    -$82,663F      Wheel assemblyRework Parts = [$25,000/10,800=$2.31]      Parts$120.00$122.00(10,000/10,000)*10,800 = 10,800     10,800 $0.00-$21,600.00U$21,600.00URework Parts$0.00$2.31(10,000/10,000)*10,800 = 10,80010,800$0.00-$25,000.00U$25,000.00ULabor$13.00$13.50(5,000/10,000)*10,800 = 5,400       5,500 $1,300.00U$2,750.00U$4,050.00UTotal wheel    $50,650.00U      Final assemblyRework Parts = [$45,000/10,800=$4.17]      Parts$350.00$367.00(10,000/10,000)*10,800 = 10,800     10,800 $0.00-$183,600.00U$183,600.00URework Parts$0.00$4.17(10,000/10,000)*10,800 = 10,80010,800$0.00-$45,000.00U$45,000.00ULabor$14.00$14.50(7,500/10,000)*10,800 = 8,100       8,000 -$1,400.00F$4,000.00U$2,600.00UTotal final assembly    $231,200.00U