Omega’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 direct batch-level costs and fixed batch-level overhead costs. The following information pertains to shipping department costs for 2017.

1. What is the static budget number of crates for 2017?
2. What is the flexible budget number of crates for 2017?
3. What is the actual number of crates shipped in 2017?
4. Assuming fixed overhead is allocated using crate-packing hours, what is the predetermined fixed overhead allocation rate?
5. For variable direct batch-level costs, compute the price and efficiency variances.
6. For fixed overhead costs, compute the spending and the production-volume variances.

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Pairs of shoes shipped Average number of pairs of shoes per crate Packing hours per crate Variable direct cost per hour Fixed overhead cost Static-Budget Amounts Actual Results 300,000 270,000 15 10 1 hour 1.2 hours $18 62,000 $20 60,000