Chapter 10 Q2

Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: $ 426,400 $ 420,400 Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor- hours Standard direct labor-hours allowed for the actual output ada 52,000 53,000 50,000 Required: 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Fixed portion of the predetermined overhead rate to 2 decimal places.) 2. Compute the fixed overhead budget variance and volume variance. (Indicate the effect of each variance by selecting "F" for avoral "U" and "None" for no effect (i.e., zer Input all amou ositive les.) or 1. Fixed portion of the predetermined overhead rate per DLH 2. Budget variance Volume variance