Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour-hours allowed for actual output of the
Happy Valley Pet Products uses a standard costing system that applies overhead to products based on standard direct labour-hours allowed for actual output of the period. During the recent year, the following data were collected:
Total budgeted fixed overhead cost for the year | $ | 124,740 | |
Actual fixed overhead cost for the year | $ | 121,340 | |
Budgeted standard direct labour-hours | 23,100 | ||
Actual direct labour-hours | 24,600 | ||
Standard direct labour-hours allowed for the actual output | 21,100 | ||
|
Required: | |
1. | Compute the fixed portion of the predetermined overhead rate for the year. (Round your answer to 2 decimal places.) |
2. | Compute the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started