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Flxed Overhead Variances Rostand Inc. operates a delivery service for over 70 restaurants. The corporation has a fleet of vehicles and has invested in a

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Flxed Overhead Variances Rostand Inc. operates a delivery service for over 70 restaurants. The corporation has a fleet of vehicles and has invested in a sophisticated, computerized communications system to coordinate its deliveries. Rostand has gathered the following actual data on last year's delivery operations: Deliveries made Direct labor Actual variable overhead Rostand employs a standard costing system. During the year, a variable overhead rate of $5.50 per hour was used. The labor standard requires 0.80 hour per delivery. Assume that the actual fixed overhead was $403,600. Budgeted fixed overhead was $400,000, based on practical capacity of 32,000 direct labor hours. Required: 1. Calculate the standard fixed overhead rate based on budgeted fixed overhead and practical capacity 38,200 31,700 direct labor hours $12.00 $168,000 2. Compute the fixed overhead spending and volume variances. Spending variance Volume variance Previous Next Check My Work 2 more Check My Work uses remaining

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