Activity-based costing, batch-level variance analysis. Rica’s Fleet Feet Inc. produces 1. Static budget number of dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they crates, 20,000 are crated and shipped in batches. The shipping department records both variable and fixed overhead costs. The following information pertains to shipping costs for 2009.

5. For variable overhead costs, compute the spending and efficiency variances.
6. For fixed overhead costs, compute the spending and the production-volume variances.LO1

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Pairs of shoes shipped Average number of pairs of shoes per crate Packing hours per crate Variable overhead cost per hour Fixed overhead cost REQUIRED Static-Budget Amounts Actual Results 240,000 180,000 12 10 1.2 hours $20 1.1 hours $21 $60,000 $55,000 1. What is the static budget number of crates for 2009? 2. What is the flexible budget number of crates for 2009? 3. What is the actual number of crates shipped in 2009? 4. Assuming fixed overhead is allocated using crate-packing hours, what is the predetermined fixed overhead allocation rate?