Calculate standard hours allowed for January's production. Calculate the amount budgeted fixed overhead cost for January. Calculate the fixed overhead budget variance for January, (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Calculate the denominator activity level use in predetermined rate.

Calculate the denominator activity level use in predetermined rate

Calculate the denominator activity level use in predetermined rate

XYZ Company produces gadgets. Overhead is applied to products based on direct labor hours. The est. allocation basis is 4,030 hours. The company's standard cost card is below: Direct materials: 6 pieces per gadget at $0.50 per piece Direct labor: 1.3 hours per gadget at $8 per hour Variable manufacturing overhead: 1.3 hours per gadget at $4 per hour Fixed manufacturing overhead: 13 hours per gadget at $6 per hour During January, the company produced 3,000 gadgets. The fixed overhead expense budget was $24,180. w Actual costs in January were as follows: Direct materials: 25,000 pieces purchased at the cost of $0.48 per piece Direct labor: 4,000 hours were worked at the cost of $35,000 Variable manufacturing overhead: Actual cost was $17,000 Fixed manufacturing overhead: Actual cost was $25,000