15.8

Walkenhorst Companys machining department prepared its 2019 budget based on the following data: 40,000 units Practical capacity Standard machine hours per unit Standard variable factory overhead Budgeted fixed factory overhead 2 $3.00 per machine hour $360,000 chine hours to apply factory overhead to production. In 2019, the department used 85,000 machine hours and incurred $625,000 in total manufacturing overhead cost to manufacture 42.000 units. Actual fixed overhead cost for the year was $375,000. Required: Determine for the year: 1. The fixed, variable, and total factory overhead application rates (per machine hour). (Round your answers to 2 decimal places.) 2. The total flexible budget, for factory overhead cost based on output achieved in 2019. 3. The production volume variance. State whether this variance was favorable (F) or unfavorable (U). 4. The total overhead spending variance. State whether this variance was favorable (F) or unfavorable (U)