Company uses standard costing. The company prepared its static budget for 2013 at 2 560 000 machine-hours for the year. Total budgeted overhead cost is $27,008,000. The variable overhead rate is $ 8permachine-hour($16perunit). Actual results for 2013 follow: Machine-hours 2,460,000 hours Output 1,250,000 units Variable overhead $20,910,000 Fixed overhead rate variance $1,550,000 U

Requirements 1. Compute for the fixed overhead:

a. Budgeted amount.

b. Budgeted cost per machine-hour.

c. Actual cost.

d. Production-volume variance.

2. Compute the variable overhead rate variance and the variable overhead efficiency variance.

3. Requirement

1.a. The budgeted fixed overhead is ?

.b.The budgeted fixed overhead cost permachine-hour is ?

.c. The actual fixed overhead cost is $? .

d. Calculate the fixedoverhead's production-volume variance. Label the variance as favourable(F) or unfavourable(U).

Production-volume variance

Requirement 2. Compute the variable overhead ratevariance, then the variable overhead efficiency variance. Label each variance as favourable(F) or unfavourable(U). Variable overhead rate variance

Variable overhead efficiency variance