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The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Formula (per machine- hour) Overhead Costs Variable cost Fixed cost Total overhead
The condensed form of Nordstrop Company's flexible budget for manufacturing overhead follows: Cost Formula (per machine- hour) Overhead Costs Variable cost Fixed cost Total overhead cost Number of units produced Actual machine-hours Actual variable overhead costs Actual fixed overhead costs $1.10 The following information is available for a recent period: a. The denominator activity of 5,000 machine-hours was chosen to compute the predetermined overhead rate. b. At the 5,000 standard machine-hours level of activity, the company should produce 2,000 units of product. c. The company's actual operating results were as follows: Predetermined overhead rate Variable rate Fixed rate 2,300 5,400 $ 6,426 $ 8,000 Machine-Hours 5,000 6,000 7,000 $ 5,500 $ 6,600 $ 7,700 7,500 7,500 7,500 $13,000 $14,100 $15, 200 Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.) per MH per MH per MH
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