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Walkenhorst Company's machining department prepared its 2019 budget based on the following data: 40,000 units Practical capacity Standard machine hours per unit Standard variable factory

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Walkenhorst Company's machining department prepared its 2019 budget based on the following data: 40,000 units Practical capacity Standard machine hours per unit Standard variable factory overhead Budgeted fixed factory overhead 2 $3.00 per machine hour $320,000 The department uses machine hours to apply factory overhead to production. In 2019, the department used 86,600 machine hours and incurred $595,000 in total manufacturing overhead cost to manufacture 42,150 units. Actual fixed overhead cost for the year was $339,000. Required: Determine for the year: 1. The fixed, variable, and total factory overhead application rates (per machine hour). (Round your answers to 2 decimal places.) 2. The total flexible budget, for factory overhead cost based on output achieved in 2019. 3. The production volume variance. State whether this variance was favorable (F) or unfavorable (U). 4. The total overhead spending variance. State whether this variance was favorable (F) or unfavorable (U). 5. The overhead efficiency variance. State whether this variance was favorable (F) or unfavorable (U). 6. The variable overhead spending variance and the fixed overhead spending variance. State whether each variance is favorable (F) or unfavorable (U). 1. Fixed overhead application rate Variable overhead application rate Total factory overhead application rate 2. Total flexible budget for overhead cost 3. Production volume variance 4. Total overhead spending variance Assignment Saved Help The department uses machine hours to apply factory overhead to production. In 2019, the department used 86,600 machine hours and incurred $595,000 in total manufacturing overhead cost to manufacture 42,150 units. Actual fixed overhead cost for the year was $339,000 Required: Determine for the year. 1. The fixed, variable, and total factory overhead application rates (per machine hour). (Round your answers to 2 decimal places.) 2. The total flexible budget, for factory overhead cost based on output achieved in 2019. 3. The production volume variance. State whether this variance was favorable (F) or unfavorable (U). 4. The total overhead spending variance. State whether this variance was favorable (F) or unfavorable (U). 5. The overhead efficiency variance. State whether this variance was favorable (F) or unfavorable (U). 6. The variable overhead spending variance and the fixed overhead spending variance. State whether each variance is favorable (F) or unfavorable (U). 1. Fixed overhead application rate Variable overhead application rate Total factory overhead application rate 2. Total flexible budget for overhead cost 3. Production volume variance 4. Total overhead spending variance 5. Overhead efficiency variance 6. Variable overhead spending variance Fixed overhead spending variance

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