Requirement 4. Assuming fixed setup overhead costs are allocated using setup-hours, what is the predetermined fixed setup overhead allocation rate? First, determine the formula and compute the static budget number of hours. Static budget Static budget fixed overhead X number of hours Now determine the formula and compute the predetermined fixed setup overhead allocation rate. Fixed overhead = rate Requirement 5. Does Torti's charge of $138 cover the budgeted variable overhead cost of an order? The budgeted total cost? (Abbreviation: OH = Overhead.) Begin by determining the formula and computing the budgeted variable overhead cost of an order. Budgeted variable OH cost of a setup Next, determine the formula and compute the budgeted fixed overhead cost of an order. Budgeted fixed OH cost of a setup Next, determine the formula and compute the budgeted fixed overhead cost of an order. Budgeted fixed OH cost of a setup The charge of $138 the budgeted incremental cost of a setup the budgeted full cost. Requirement 6. For direct variable setup costs, compute the price and efficienc and covers Begin by calculating the following amounts for the variable overhead. , but does cover Actual input but does not cover Actual costs Flexibl incurred budgeted rate budge Variable overhead Now compute the price and efficiency variances using the amounts you calculated above. (Label the variance as favorable (F) or unfavorable (U).) or The Torti Company specializes in making fraternity and sorority T-shirts for the college market. Due to the high setup costs for each batch printed, Torti holds the T-shirt requests until demand is approximately 150 shirts. At that point Torti will schedule the setup and production of the shirts. For rush orders, Torti will produce smaller batches for an additional charge of $138 per setup. Budgeted and actual costs for the printing process for 2017 were as follows: E: (Click the icon to view the budgeted and actual costs.) Read the requirements. Requirement 1. What is the static budget number of setups for 2017? Determine the formula, then compute the static budget number of setups. Data Table Static budget Budgeted shirts produced 195000 Budgeted shirts per setup 150 number of setups 1300 Static-Budget Amounts Actual Results Number of shirts produced 195,000 148,500 Requirement 2. What is the flexible-budget number of setups for 2017? 150 99 Determine the formula, then compute the flexible-budget number of setups. 5 8.0 Average number of shirts per setup Hours to set up machines Direct variable cost per setup-hour Total fixed setup overhead costs $ 25 $ 37 Flexible budget number of setups Actual shirts produced $ 26,000 $ 25,000 Budgeted shirts per setup 150 148500 990 Requirement 3. What is the actual number of setups in 2017? Print Done Done Determine the formula, then compute the actual number of setups. Actual Actual shirts per setup Actual shirts produced 148500 number of setups 1500 99 Requirement 4. Assuming fixed setup overhead costs are allocated using setup-hours, what is the predetermined fixed setup overhead allocation rate? First, determine the formula and compute the static budget number of hours. Requirement 4. Assuming fixed setup overhead costs are allocated using setup-hours, what is the predetermined fixed setup overhead allocation rate? First, determine the formula and compute the static budget number of hours. Static budget Static budget fixed overhead X number of hours Now determine the formula and compute the predetermined fixed setup overhead allocation rate. Fixed overhead = rate Requirement 5. Does Torti's charge of $138 cover the budgeted variable overhead cost of an order? The budgeted total cost? (Abbreviation: OH = Overhead.) Begin by determining the formula and computing the budgeted variable overhead cost of an order. Budgeted variable OH cost of a setup Next, determine the formula and compute the budgeted fixed overhead cost of an order. Budgeted fixed OH cost of a setup Next, determine the formula and compute the budgeted fixed overhead cost of an order. Budgeted fixed OH cost of a setup The charge of $138 the budgeted incremental cost of a setup the budgeted full cost. Requirement 6. For direct variable setup costs, compute the price and efficienc and covers Begin by calculating the following amounts for the variable overhead. , but does cover Actual input but does not cover Actual costs Flexibl incurred budgeted rate budge Variable overhead Now compute the price and efficiency variances using the amounts you calculated above. (Label the variance as favorable (F) or unfavorable (U).) or The Torti Company specializes in making fraternity and sorority T-shirts for the college market. Due to the high setup costs for each batch printed, Torti holds the T-shirt requests until demand is approximately 150 shirts. At that point Torti will schedule the setup and production of the shirts. For rush orders, Torti will produce smaller batches for an additional charge of $138 per setup. Budgeted and actual costs for the printing process for 2017 were as follows: E: (Click the icon to view the budgeted and actual costs.) Read the requirements. Requirement 1. What is the static budget number of setups for 2017? Determine the formula, then compute the static budget number of setups. Data Table Static budget Budgeted shirts produced 195000 Budgeted shirts per setup 150 number of setups 1300 Static-Budget Amounts Actual Results Number of shirts produced 195,000 148,500 Requirement 2. What is the flexible-budget number of setups for 2017? 150 99 Determine the formula, then compute the flexible-budget number of setups. 5 8.0 Average number of shirts per setup Hours to set up machines Direct variable cost per setup-hour Total fixed setup overhead costs $ 25 $ 37 Flexible budget number of setups Actual shirts produced $ 26,000 $ 25,000 Budgeted shirts per setup 150 148500 990 Requirement 3. What is the actual number of setups in 2017? Print Done Done Determine the formula, then compute the actual number of setups. Actual Actual shirts per setup Actual shirts produced 148500 number of setups 1500 99 Requirement 4. Assuming fixed setup overhead costs are allocated using setup-hours, what is the predetermined fixed setup overhead allocation rate? First, determine the formula and compute the static budget number of hours