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Company uses standard costing. The company prepared its static budget for 2018 at 2,500,000 machine hours for the year. Total budgeted overhead cost is $33,500,000. The variable overhead rate is $11 per machine hour ($22 per unit). Actual result for 2018 as follow:

Machine-hours 2,400,000 hours

Output 1,230,000 units

Variable overhead $27,600,000

Fixed overhead rate variance $1,350,000 U

How did you get the budgeted amount of 6,000,000

I. Calculate for the fixed? overhead:

a. Budgeted amount. 6,000,000

and $11.50 of the actual cost. and the 2 hr for budgeted unit. is it the same as (22/11)

Cost card Particulars Standard cost for actual production Actual cost Hour Rate( $/hr) Amount Particulars Hour Rate( $/hr) Amount Variable overhead 24,60,000.00 S 11.00 $ 2,70,60,000 Variable overhead 24,00,000.00 $ 11.50 $ 2,76,00,000.00 (12,30,000 unit*2 Fixed overhead 25,00,000.00 S 2.40 $ 60,00,000 Fixed overhead 73,50,000.00 ($335,00,000- ($60,00000+$13,50,00 (25,00,000*11) 0) Total Cost $ 3,30,60,000 Total Cost S 3,49,50,000 (25,00,000 Budgeted unit hour/2 hour) 12,50,000 Actual unit 12,30,000