Problem 10A-9 (Algo) Applying Overhead; Overhead Variances (L010-3, L010-4) Baird Company makes classic Polish sausage. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the basis of standard direct labor-hours. According to the company's planning budget, the following manufacturing overhead costs should be incurred at an activity level of 26,000 labor-hours (the denominator activity level): Variable manufacturing overhead cost Pixed manufacturing overhead cost Total manufacturing overhead cost $ 123,500 175,500 $ 299,000 During the most recent year, the following operating results were recorded Activity: hetual Labor-hours worked Standard labor-hours allowed for the actual output Costi Actual variable manufacturing overhead coat incurred Actual fixed manutacturing overhead cont incurred 23,000 24.000 $ 142.600 $ 156,000 At the end of the year, the company's Manufacturing Overhead account contained the following data: hetual manufacturing Overhead 298.500 Applied 22,600 276,000 Management would like to determine the cause of the $22.600 underapplied overhead. Required: 1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. 2. Show how the $276,000 Applied figure in the Manufacturing Overhead account was computed. 3. Breakdown the $22,600 underapplied overhead into four components: (1) variable overhead rate variance (2) variable overhead efficiency variance. (3) fixed overhead budget variance, and (4) fixed overhead volume varlance. Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. (Round your answers to 2 decimal places.) Pradtermined overhead rato Variable element Fixed sement per hour per hour por hour Required: 1. Compute the predetermined overhead rate. Break the rate down into variable and fixed cost elements. 2. Show how the $276,000 Applied figure in the Manufacturing Overhead account was computed. 3. Breakdown the $22,600 underapplied overhead into four components: (1) variable overhead rate variance, (2) variable overhead efficiency variance, (3) fixed overhead budget variance, and (4) fixed overhead volume variance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Show how the $276,000 Applied figure in the Manufacturing Overhead account was computed. (Round your per hour value to 2 decimal places.) per hour Breakdown the $22,600 underapplied overhead into four components: (1) variable overhead rate variance, (2) variable overhead efficiency variance, (3) fixed overhead budget variance, and (4) fixed overhead volume variance. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) Show less Variable overhead: Rate variance Efficiency verano Fixed overhead Budget valace Volume vanato
