Compute standard overhead cost per unit; compute total standard overhead for units produced; compute total overhead variance;

use the two-variance method to analyze total variance. (Objs.

1-3). Boise Corporation bases overhead charges on a standard cost per direct labor hour. The standard overhead rate is based on the budget at 10,000 hours to produce 5,000 units. The budget at that level called for fixed overhead of $100,000 and variable overhead of

$80,000. During the year, 5,200 units were produced. Fixed overhead was $100,000 and variable overhead was $85,200.

a. Determine the standard overhead cost per unit.

b. What is the standard overhead cost of the units produced during the year?

c. Compute the total overhead variance for the year.

d. Using the two-variance method, compute the budget variance for the year.

e. Using the two-variance method, compute the volume variance for the year. LO.1