Amir's Fleet Feet Inc. produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping department records both variable and fixed overhead costs. The following information pertains to shipping costs for 2015.

Static-Budget AmountsActual Results

Pairs of shoes shipped................................240,000........................180,000

Average number of pairs of shoes per crate..............12...............................10

Packing hours per crate 1.2 hours 1.1 hours

Variable overhead cost per hour........................$ 20..............................$ 21

Fixed overhead cost..................................$60,000.........................$55,000

Required

1. What is the static-budget number of crates for 2015?

2. What is the flexible-budget number of crates for 2015?

3. What is the actual number of crates shipped in 2015?

4. Assuming fixed overhead is allocated using crate-packing hours, what is the predetermined fixed overhead allocation rate?

5. For variable overhead costs, calculate the rate and efficiency variances.

6. For fixed overhead costs, calculate the rate and the production-volume variances.