Chapter 24

Below is are the options for the selection box with the drop down arrows from above.

Question 8 Novak Company produces one product, a putter called GO-Putter. Novak uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $650,000 comprised of $250,000 of variable costs and $400,000 of fixed costs. Novak applies overhead on the basis of direct labor hours. During the current year, Novak produced 75,400 putters, worked 88,500 direct labor hours, and incurred variable overhead costs of $147,030 and fixed overhead costs of $431,100. Compute the predetermined variable overhead rate and the predetermined fixed overhead rate. (Round answers to 2 decimal places, e.g. 2.75.) Variable Fixed Predetermined Overhead Rate $ LINK TO TEXT VIDEO: SIMILAR EXERCISE Compute the applied overhead for Novak for the year. Overhead Applied $ LINK TO TEXT VIDEO: SIMILAR EXERCISE Compute the total overhead variance. Total Overhead Variance Click if you would like to Show Work for this question: Open Show Work Compute the total overhead variance. Total Overhead Variance Click if you would like to Show W Neither favorable nor unfavorable Unfavorable Favorable LINK TO TEXT VIDEO: STMTI AR EXERCISE