Just need help with e-h

T) Ole Company manufactures special electrical equipment and parts. Ole employs a standard cost accounting system with separate standards established for each product. A special transformer is manufactured in the Transformer Department. Production volume is measured by direct labor hours in this department and a flexible budget system is used to plan and control department overhead. Standard costs for the special transformer are determined annually in September for the coming year. The standard cost of a transformer was computed at $57.00 as shown below Direct materials: Copper Direct labor 3 spools 3.009.00 4 hours $7.00 28.00 Variable overhead 4 hours$3.00 @ $2.00 ixed overhead 8.00 $57.00 Total Overhead rates were based upon normal and expected monthly capacity, both of which were 4,000 direct labor hours. Practical capacity for this department is 5,000 direct labor hours per month Variable overhead costs are expected to vary with the number of direct labor hours actually used. During October, 900 transformers were produced. This was below expectations because a work stoppage occurred during contract negotiations with the labor force. Once the contract was settled the wage rate was increased to $7.25/hour and overtime was scheduled in an attempt to catch up to expected production levels The following costs were incurred in October: Direct materials: purchased 2,600 spools@ $3.08/spool Used: 2,600 spools Copper Direct labor Regular time 2,000 hours @ $7.00 Overtime 1,400 hours@$7.25 600 of the 1,400 hours were subject to overtime premium. The total overtime premium is included in variable overhead in accordance with company accounting practices. Overhead: Variable $16,670 Fixed $8,800 10