Exercise 16-45 (Static) Fixed Cost Variances (LO 16-6)

Mint Company applies fixed overhead at the predetermined overhead rate of $1.50 per direct labor hour. The direct labor standard states that 1 unit of the product should require 1 hour of direct labor. For May, budgeted fixed overhead was $604,500. The production volume (volume) variance amounted to $4,500 unfavorable, and the price (budget) variance was $15,000 favorable. Required: a. What was the budgeted volume in units of product for May? [The correct answer is 403,000 units. Just take this answer. You do not have to solve for it] b. What was the actual volume of units produced in May? c. What was the actual fixed overhead incurred for May?