Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In addition to other costs, Zachary Telephone Company planned to incur $420,070 of fixed manufacturing overhead in making 353,000 telephones. Zachary actually produced 361,000 telephones,
In addition to other costs, Zachary Telephone Company planned to incur $420,070 of fixed manufacturing overhead in making 353,000 telephones. Zachary actually produced 361,000 telephones, incurring actual overhead costs of $413,070. Zachary establishes its predetermined overhead rate based on the planned volume of production (expected number of telephones). Required: a. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.) b. Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) c. Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) a. per unit b. Predetermined overhead rate Total fixed cost spending variance Total fixed cost volume variance c
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