You may assume that the company uses a standard cost system, and that the flexible budget is based on standard direct labour hours.

Fill in the blanks and answer Q#11 - 18	CASE A
1. Denominator activity in hours
2. Standard hours allowed for units produced	5,250 hrs
3. Actual hours worked	5,600 hrs
4. Total budgeted fixed overhead
5 . Actual variable overhead	$12,000
6. Actual fixed overhead	$22,000
7. *Total variable overhead applied to production
8. *Total fixed overhead applied to production	$21,000
9. Variable overhead spending variance
10. Variable overhead efficiency variance	$875 U
11. Fixed overhead budget and spending variance
12. Fixed overhead production volume (denominator) variance	$1,000 F
13. Variable overhead rate (standard or budgeted)
14. Fixed overhead rate (standard or budgeted)
15. (Underapplied) or Overapplied overhead (Difference between Total Allocated and Actual Total Overhead)

* Based on standard hours allowed for units produced.

What is the over (under) applied overhead?

What are the denominator hours?

What is the variable overhead spending variance?

What is the variable overhead rate per hour?

What is the variable overhead applied?

What is the budgeted fixed overhead?

What is the fixed overhead rate per hour?

What is the fixed overhead spending variance?