Crystal Ball Company (CBC) bases its fixed overhead rate on practical capacity of 80,000 units per year. Budgeted and actual results for the most recent year follow:

Required:

Calculate the following for CBC:

1. Fixed overhead rate based on practical capacity.

2. Fixed overhead spending variance.

3. Expected (planned) capacity variance.

4. Unexpected (unplanned) capacity variance.

5. Total over- or underapplied fixed manufacturing overhead.

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Budgeted Actual $550,000 70,000 77,000 Fixed manufacturing overhead Number of units produced $540,000