Selected information relating to Yost Companys operations for the most recent year is as follows: Activity: Denominator

Question:

Selected information relating to Yost Company’s operations for the most recent year is as follows:

Activity:
Denominator activity level (machine-hours)........................30,000
Standard hours allowed per unit....................................................3
Number of units produced....................................................12,000
Cost:
Actual fixed overhead costs incurred...............................$267,000
Fixed overhead budget variance...........................................$3,000 F

The company applies overhead cost to products on the basis of machine-hours.


Required:

1. What were the standard hours allowed for the actual production?

2. What was the fixed portion of the predetermined overhead rate?

3. What was the volume variance?

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Related Book For  book-img-for-question

Introduction to Managerial Accounting

ISBN: 978-1259105708

5th Canadian edition

Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

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