Required:

1. Determine the Fixed Overhead Budget and Volume Variances.

Question 5 The No-Ring Bathtub Company, producers of self-cleaning bathtubs, had the following standard production costs based on an annual normal capacity of 60,000 tubs or 5,000 per month: Standard Cost Per Tub: Direct materials (25 pounds) Direct labor (3 hours) Variable overhead ($1.25 per direct labor hour) Fixed overhead ($3.00 per labor hour) Total standard cost $18.00 18.00 3.75 9.00 $48.75 The actual production for May was 6,000 tubs, and the actual costs were as follows: Direct materials (147,000 pounds used) Direct labor (17,100 actual hours) Variable overhead Fixed overhead Total actual costs $110,250 101,745 23,000 48,000 $282.995 160,000 pounds of material were purchased during May at a cost of $116,800. Required