Exhibit 10-1

Flatland Company applies fixed manufacturing overhead costs to products based on direct labor hours. Information for the month of April appears below. Flatland expects to produce and sell 18,000 units for the month.

Below is budget information for Flatland Company.

Budgeted fixed overhead costs	$270,000
Budgeted direct labor hours	90,000 hours
Standard direct labor hours per unit	5 hours per unit
Actual production	17,000
Actual fixed overhead costs	$280,000

47. Refer to Exhibit 10-1. Based on this information, what is the standard cost per direct labor hour (rounded to the nearest cent)?

a. $5.29

b. $3.11

c. $3.00

d. $15.00

e. None of the answer choices is correct.

48 Refer to Exhibit 10-1. Based on this information, what is the fixed overhead spending variance?

a. $15,000 favorable

b. $10,000 unfavorable

c. $15,000 unfavorable

d. $10,000 favorable

e. None of the answer choices is correct.

49. Refer to Exhibit 10-1. Based on this information, what is the fixed overhead production volume variance?

a. $15,000 unfavorable

b. $10,000 favorable

c. $15,000 favorable

d. $10,000 unfavorable

e. None of the answer choices is correct.