1. At the beginning of the accounting period, Nutrition Incorporated estimated that total fixed overhead cost would be $50,600 and that sales volume would be 10,000 units. At the end of the accounting period actual fixed overhead cost amounted to $56,100 and actual sales volume was 11,000 units. Nutrition uses a predetermined overhead rate and a cost plus pricing model to establish its sales price. Based on this information the predetermined overhead rate is

$5.61.

$5.06.

$4.60.

$5.10.

1a.

Based on this information, Nutrition

underpriced its products.

overpriced its products.

priced its products accurately.

The answer cannot be determined from the information provided.

1b.

Based on this information the overhead spending variance is

$5,500 favorable.

$440 favorable.

$5,500 unfavorable.

$440 unfavorable.