440 go book contents budget and volume variances. EXERCISE 10-14 Using Fixed Overhead Variances [LOS, LO6 The standard cost card for the single product manufactured by Princess Company is given below: Standard Cost Card-Per Unit Direct materials,21 mstres at $6 per metre.. 620 ariable overhead, 06 direct labour hours at $375 per direct labour hour 540 $3645 otal standard cost per unt Last year, the company produced 7,500 units of product and worked 6,150 actual direct labour-hours. Manufacturing overhead cost is applied to production on the basis of direct labour-hours. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below Actual Fe Overhead Cost 38 760 Budgated Faed Overhead Cost Fized Overhead Cast Applied to Work in Process hours x$9 per hour Budgst variance. $? Vokume varkince $2250 Required: 1. What were the standard hours allowed for the year's production? 2. What was the amount of budgeted fixed overhead cost for the year? 3. What was the budget variance for the year? 4. What denominator activity level did the company use in setting the predetermined overhead rate for the year? EXERCISE 10-15 Flxed Overhead Variances [LOS. LO6