Managerial Accounting Overhead Variances Quiz Name Weller Company's flexible budget for manufacturing overhead (in condensed form) follows- The following information is available for a recent period: a. The denominator activity of 8,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 8,000 standard machine-hours level of activity, the company should produce 3,200 units of product. c. The company's actual operating results were as follows: Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. 2. What were the standard hours allowed for the year's output? 3. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances. Predetermined Overhead Rate = Variable Portion of the Predetermined Overhead Rate = Fixed Portion of the Predetermined Overhead Rate = a. The denominator activity of 8,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 8,000 standard machine-hours level of activity, the company should produce 3,200 units of product. c. The company's actual operating results were as follows: Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. 2. What were the standard hours allowed for the year's output? 3. Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances. Predetermined Overhead Rate = Variable Portion of the Predetermined Overhead Rate = Fixed Portion of the Predetermined Overhead Rate = The Standard Hours Allowed for the year's output = Variable Overhead Spending Variance = Variable Overhead Efficiency Variance = Fixed Overhead Budget Variance = Fixed Overhead Volume Variance =