assignment exercise 17-1,17-2,17-3, and 18-1,18- 2,18- 3,’Assignment Exercise 17-1: Variance Analysis Greenview Hospitaloperated at 120% of normal capacity in two of its departmentsduring the year. It operated 120% times 20,000 normal capacitydirect labor nursing hours in rou- tine services and it operated120% times 20,000 normal capacity equipment hours in thelaboratory. The lab allocates overhead by measuring minutes andhours the equipment is used; thus equipment hours. Assumptions: ForRoutine Services Nursing: • 20,000 hours X 120% = 24,000 directlabor nursing hours. • Budgeted Overhead at 24,000 hours = $42,000fixed plus $6,000 variable = $48,000 total. • Actual Overhead at24,000 hours = $42,000 fixed plus $7,000 variable = $49,000 total.• Applied Overhead for 24,000 hours at $2.35 = $56,400. ForLaboratory: • 20,000 hours X 120% = 24,000 equipment hours. •Budgeted Overhead at 24,000 hours = $59,600 fixed plus $11,400variable = $71,000 total. • Actual Overhead at 24,000 hours =$59,600 fixed plus $11,600 variable = $71,200 total. • AppliedOverhead for 24,000 hours at $3.455 = $82,920.
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