Slim Shady Company (SSC) in E10-14 calculates a fixed overhead rate based on budgeted fixed overhead of $30,000 and budgeted production of 24,000 units. Actual results were as follows:

Required:

Calculate the following for SSC:

1. Fixed overhead rate based on budgeted production.

2. Fixed overhead spending variance.

3. Fixed overhead volume variance.

4. Oven or underapplied fixed overhead.

Data from E10-14

Slim Shady Company (SSC) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from SSC’s standard cost card follows:

During August, SSC had the following actual results

Transcribed Image Text:

Number of units produced and sold Actual fixed overhead 25,000 $29,000