Set up a worksheet for Actual Overhead Costs and Budget Variance with a column for Routine Services Nursing and a second column for Laboratory.
Greenview Hospital operated at 120 percent of normal capacity in two of its departments during the y Show more Greenview Hospital operated at 120 percent of normal capacity in two of its departments during the year. It operated 120 percent times 20000 normal capacity direct labor nursing hours in routine services and it operated 120 percent 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 x 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 x 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 Set up a worksheet for Applied Overhead Costs and Volume Variance with a column for Routine Services Nursing and a second column for Laboratory. Set up a worksheet for Actual Overhead Costs and Budget Variance with a column for Routine Services Nursing and a second column for Laboratory. 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. Insert input data from Assumptions. Complete computations for all three worksheets. Show less
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