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Primara Corporation has a standard cost system In which It apples overhead to products based on the standard direct labor-hours allowed for the actual output of the perlod. Data concerning the most recent year appear below. Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year $ 467,500 $ 458,000 Budgeted direct labor-hours (denominator level of activity) 55,000 Actual direct labor-hours 56,000 Standard direct labor-hours allowed for the actual output 53,000 Requlred: 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Flxed portlon of the predetermined overhead rate to 2 decimal places.) 2 Compute the fixed overhead budget varlance and volume varlance. (Indlcate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance.). Input all amounts as positive values.) 1. Fixed portion of the predetermined overhead rate per DLH 2. Budget variance Volume variance

Primara Corporation has a standard cost system In which It apples overhead to products based on the standard direct labor-hours allowed for the actual output of the perlod. Data concerning the most recent year appear below. Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year $ 467,500 $ 458,000 Budgeted direct labor-hours (denominator level of activity) 55,000 Actual direct labor-hours 56,000 Standard direct labor-hours allowed for the actual output 53,000 Requlred: 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Flxed portlon of the predetermined overhead rate to 2 decimal places.) 2 Compute the fixed overhead budget varlance and volume varlance. (Indlcate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance.). Input all amounts as positive values.) 1. Fixed portion of the predetermined overhead rate per DLH 2. Budget variance Volume variance

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 30P: Primera Company produces two products and uses a predetermined overhead rate to apply overhead....
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Primara Corporation has a standard cost system In whlch It applles overhead to products based on the standard direct labor-hours allowed for the actual output of the perlod. Data concerning the most recent year appear below. Total budgeted fixed overhead cost for the year Actual Eixed overhead cost for the year $ 467,500 $458,000 55,000 56,000 53,000 Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output Required: 1. Compute the fixed portlon of the predetermined overhead rate for the year. (Round Flxed portlon of the predetermined overhead rate to 2 decImal places.) 2 Compute the fixed overhead budget varlance and volume varlance. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance.). Input all amounts as positive values.) 1. Fixed portion of the predetermined overhead rate per DLH 2. Budget variance Volume variance
Transcribed Image Text:Primara Corporation has a standard cost system In whlch It applles overhead to products based on the standard direct labor-hours allowed for the actual output of the perlod. Data concerning the most recent year appear below. Total budgeted fixed overhead cost for the year Actual Eixed overhead cost for the year $ 467,500 $458,000 55,000 56,000 53,000 Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output Required: 1. Compute the fixed portlon of the predetermined overhead rate for the year. (Round Flxed portlon of the predetermined overhead rate to 2 decImal places.) 2 Compute the fixed overhead budget varlance and volume varlance. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance.). Input all amounts as positive values.) 1. Fixed portion of the predetermined overhead rate per DLH 2. Budget variance Volume variance
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