Chapter 8 question 10

Book Hint Print Check my wor World Company expects to operate at 70% of its productive capacity of 20,000 units per month. At this planned level, the company expects to-use 11,550 standard hours of direct labor. Overhead Is allocated to products using a predetermined standard rate of 0.825 direct labor hour per unit At the 70% capacity level, the total budgeted cost includes $23,100 fixed overhead cost and $138,600 variable overhead cost in the current month, the company Incurred $135,860 actual overhead and 7,180 actual iabor hours white producing 11,200 units. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations. Round "OH costs per DL hour" to 2 decimal places.) (1) Compute the predetermined sbndard overhead rate for total overhead. (2) Compute the total overhead variance. \ -"a-lkln \"mam-s4 note ' . ,;:.,l_-. V