Baird Company makes classic Polish sausage. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard direct labor-hours. According to the company's planning budget, the following manufacturing overhead costs should be incurred at an activity level of 28,000 labor-hours (the denominator activity level): During the most recent year, the following operating results were recorded: At the end of the year, the company's Manufacturing Overhead account contained the following data: Management would like to determine the cause of the $27,000 underapplied overhead. Required: 1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost eleshents. 2. Show how the $325,000 Applied figure in the Manufacturing Overhead account was computed. 3. Break down the $27,000 underapplied overhead into four components: (1) variable overhead rate variance, (2) variable overhead efficiency variance, (3) fixed overhead budget variance, and (4) fixed overhead volume variance. Comblete this auestion bv enterina vour answers in the tabs below. Management would like to determine the cause of the $27,000 underapplied overhead, Required: 1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. 2. Show how the $325,000 Applied figure in the Manufacturing Overhead account was computed. 3. Break down the $27,000 underapplied overhead into four components: (1) variable overhead rate variance, (2) variable over efficiency variance, (3) fixed overhead budget variance, and (4) fixed overhead volume variance. Complete this question by entering your answers in the tabs below. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Management would like to determine the cause of the $27,000 underapplied overhead. Required: 1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. 2. Show how the $325,000 Applied figure in the Manufacturing Overhead account was computed. 3. Break down the $27,000 underapplied overhead into four components: (1) variable overhead rate variance, (2) variable overhead efficiency variance, (3) fixed overhead budget variance, and (4) fixed overhead volume variance. Complete this question by entering your answers in the tabs below. Show how the $325,000 Applied figure in the Manufacturing Overhead account was computed. (Round your per hour value to 2 decimal places.) Management would like to determine the cause of the $27,000 underapplied overhead. Required: 1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. 2. Show how the $325,000 Applied figure in the Manufacturing Overhead account was computed. 3. Break down the $27,000 underapplied overhead into four components: (1) variable overhead rate varlance, (2) variable overhead efficiency variance, (3) fixed overhead budget variance, and (4) fixed overhead volume variance. Complete this question by entering your answers in the tabs below. Break down the $27,000 underapplied overhead into four components: (1) varlable overhead rate variance, (2) variable overhead efficiency variance, (3) fixed overhead budget variance, and (4) fixed overhead volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance), Input all amounts as positive values.)
