Bucky Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
Budgeted (Planned) Overhead:
Budgeted variable manufacturing overhead	$29,715
Budgeted fixed manufacturing overhead	53,340
Total budgeted manufacturing overhead	$83,055
Budgeted production (a)	15,000	units
Standard hours per unit (b)	0.7	machine-hours
Budgeted hours (a) (b)	10,500	machine-hours
Applying Overhead:
Actual production (a)	16,000	units
Standard hours per unit (b)	0.7	machine-hours
Standard hours allowed for the actual production (a) (b)	11,200	machine-hours
Actual Overhead and Hours:
Actual variable manufacturing overhead	$36,966
Actual fixed manufacturing overhead	38,340
Total actual manufacturing overhead	$75,306
Actual hours	10,100	machine-hours
(25 points)
Required:
a. Compute the variable component of the companys predetermined overhead rate.
b. Compute the fixed component of the companys predetermined overhead rate.
c. Compute the companys predetermined overhead rate.
d. Determine the variable overhead rate variance for the year.
e. Determine the variable overhead efficiency variance for the year.
f. Determine the fixed overhead budget variance for the year.
g. Determine the fixed overhead volume variance for the year.
h. Determine whether overhead was underapplied or overapplied for the year and by how much.