Weller Companys flexible budget for manufacturing overhead (in condensed form) follows:

Cost

Formula

(per machine Machine-Hours

Overhead Costs hour) 8,000 9,000 10,000

Variable costs $1.05 $ 8,400 $ 9,450 $10,500

Fixed costs 24,800 24,800 24,800

Total Overhead Costs $33,200 $34,250 $35,300

The following information is available for a recent period:

The denominator activity of 8,000 machine-hours was chosen to compute the predetermined overhead rate.

At the 8,000 standard machine-hours level of activity, the company should produce 3,200 units of product.

The companys actual operating results were as follows:

Number of units produced 3,500

Actual machine-hours 8,500

Actual variable overhead costs $9,860

Actual fixed overhead costs $25,100

Required:

Compute the predetermined overhead rate and break it down into variable and fixed cost elements.

What were the standard hours allowed for the years output?

Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances.

Predetermined Overhead Rate = ________________

Variable Portion of the Predetermined Overhead Rate = ________________

Fixed Portion of the Predetermined Overhead Rate = ________________

The Standard Hours Allowed for the years output = ________________

Variable Overhead Spending Variance = ________________

Variable Overhead Efficiency Variance = ________________

Fixed Overhead Budget Variance = ________________

Fixed Overhead Volume Variance = ________________