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The predetermined overhead rate for Marigold Corp. is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount
The predetermined overhead rate for Marigold Corp. is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $14800 variable and $9000 fixed, and 2500 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is
$1200 F. |
| $3000 F. |
| $1200 U. |
| $3000 U. |
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