Given:

Nornal machine hours 18,000 18,000

Actual machine hours 17,000 20,120
Standard fixed FOH per mhr 20 20
Standard variable FOH per mhr 17 17
Actual Factory Overhead 651,000 651,000

Spending variance:
Actual FOH 651,000 651,000
Budgeted:
Fixed (Normal mhr*FFOH rat 360,000 360,000
Variable (Actual mhr*VFOH r 289,000 649,000 342,040 702,040
Overspendin
Variance, over-spent, unfavorable 2,000 g, -51,040
unfavorable

Idle capacity variance:

Budgeted 649,000 702,040
Applied (Actual mhr*sum FFOH rate + VFOH r 629,000 744,440
Under-
Variance 20,000 applied, 42,400
Unfavorable

Alternative way to compute idle capacity variance 42,400

=(Actual machine hours - Normal machine hours) * Standard FOH Rate

Over- / Under- applied:

Actual FOH 651,000 651,000
Applied FOH 629,000 744,440
Variance 22,000 Unfavorable 93,440

Spending 2,000 Unfavorable -51,040

Idle Capacity 20,000 Unfavorable 42,400
Total variance 22,000 Unfavorable -93,440
 18,000
15,900
20
17
651,000

651,000

360,000
270,300 630,300
Under-
spending, 20,700
Over-spending
favorable and Unfavorable

630,300
588,300
Over-applied, 42,000
Underapplied
Favorable and Unfavorable

-42,000

651,000
588,300
62,700

Favorable 20,700 Unfavorable

Favorable 42,000 Favorable
Unfavorable -21,300 Favorable
Depreciation Factory machin 1,000,000.00
No of units produced 1,000,000.00
Depreciation per unit 1.00

Products A B C
Units produced 500,000 200,000 300,000
No. of hours per unit 3.00 1 1
Total hours 1,500,000 200,000 300,000 2,000,000
Allocation of depreciation 750,000.00 100,000.00 150,000.00
Unit cost of depreciation 1.50 0.50 0.50
 Seller Buyer Seller Buyer Seller
VAT VAT Non-VAT VAT VAT
Sales / PurchaseOutput Input NO output No input Output

Sales
A/R 100,000.00 100,000.00 100,000.00
Output VAT 10,714.29
Sales 89,285.71 100,000.00

Purchases:
Purchases/Inven 89,285.71 100,000.00 100,000.00
Input VAT 10,714.29
A/P 100,000.00 100,000.00
Buyer Seller Buyer
Non-VAT Non-VAT Non-VAT
No input NO output No input

100,000.00
10,714.29
90,285.71 100,000.00

100,000.00

100,000.00 100,000.00