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25 Patton Corporation uses a standard cost system to account for the costs of its one product. Budgeted fixed overhead is $79,000, budgeted production is

25

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Patton Corporation uses a standard cost system to account for the costs of its one product. Budgeted fixed overhead is $79,000, budgeted production is 2,460 per month, and practical capacity is 3,200 units. During November, Patton produced 2,300 units. Fixed overhead incurred totaled $70,510. Assume Patton calculates its fixed overhead rate based on budgeted production. Required: a. What is the fixed overhead rate? b. What is the fixed overhead volume variance? c. By how much was fixed overhead over- or underapplied? Now assume Patton calculates its fixed overhead rate based on practical capacity. d. What is the fixed overhead capacity rate? e. What is the expected (planned) capacity variance? f. What is the unexpected (unplanned) capacity variance? g. By how much was fixed overhead over- or underapplied? Complete this question by entering your answers in the tabs below. What is the fixed overhead rate? Note: Round your final answer to nearest dollar amount. What is the fixed overhead volume variance? Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Do not round intermediate calculations. Round your final answer to nearest dollar amount. By how much was fixed overhead over- or underapplied? Note: Do not round intermediate calculations. Round your final answer to nearest dollar amount. What is the fixed overhead capacity rate? Note: Round your final answer to nearest dollar amount. What is the expected (planned) capacity variance? Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Do not round intermediate calculations. Round your final answer to nearest dollar amount. What is the unexpected (unplanned) capacity variance? Note: Indicate the effect of variance by selecting "Favorable", "Unfavorable", or "None" for no effect (i.e., zero variance). Do not round intermediate calculations. Round your final answer to nearest dollar amount. By how much was fixed overhead over- or underapplied? Note: Do not round intermediate calculations. Round your final answer to nearest dollar amount

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