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?
Step by Step Answer:
Introduction to Managerial Accounting
ISBN: 978-1259105708
5th Canadian edition
Authors: Peter C. Brewer, Ray H. Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan