Problem 15-23 Fixed overhead variances-various issues LO 5, 6

Silverstone's production budget for July called for making 38,200 units of a single product. The firm's production standards allow one-half of a machine hour per unit produced. The fixed overhead budget for July was $33,234. Silverstone uses an absorption costing system. Actual activity and costs for July were:

Units produced		34,344
Fixed overhead costs incurred	$	37,700

Required:

a. Calculate the predetermined fixed overhead application rate per machine hour that would be used in July. (Round your answer to 2 decimal places.)

b. Calculate the number of machine hours that would be allowed for actual July production.

c. Calculate the fixed overhead applied to work in process during July. (Do not round intermediate calculations.)

d. Calculate the over- or underapplied fixed overhead for July. (Do not round intermediate calculations.)

e. Calculate the fixed overhead budget and volume variances for July. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)