Complete computations for all three worksheets.
Greenview Hospital operated at 120% of normal capacity in two of its departments during the year. It Show more Greenview Hospital operated at 120% of normal capacity in two of its departments during the year. It operated 120% times 20000 normal capacity direct labor nursing hours in routine services and it operated 120% times 20000 normal capacity equipment hours in the laboratory. The lab allocates overhead by measuring minutes and hours the equipment is used; thus equipment hours. Assumptions: For Routine Services Nursing: 20000 hours 120% = 24000 direct labor nursing hours. Budgeted Overhead at 24000 hours = $42000 fixed plus $6000 variable = $48000 total. Actual Overhead at 24000 hours = $42000 fixed plus $7000 variable = $49000 total. Applied Overhead for 24000 hours at $2.35 = $56400. For Laboratory: 20000 hours 120% = 24000 equipment hours. Budgeted Overhead at 24000 hours = $59600 fixed plus $11400 variable = $71000 total. Actual Overhead at 24000 hours = $59600 fixed plus $11600 variable = $71200 total. Applied Overhead for 24000 hours at $3.455 = $82920. Required 1. Set up a worksheet for applied overhead costs and volume variance with a column for Routine Services Nursing and a second column for Laboratory. 2. Set up a worksheet for actual overhead costs and budget variance with a column for Routine Services Nursing and a second column for Laboratory. 3. Set up a worksheet for volume variance and budget variance totaling net variance with a column for Routine Services Nursing and a second column for Laboratory. 4. Insert input data from the Assumptions. 5. Complete computations for all three worksheets. Show less
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