Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below:
Total budgeted fixed overhead cost for the year | $ | 487,500 |
Actual fixed overhead cost for the year | $ | 480,000 |
Budgeted direct labor-hours (denominator level of activity) | 65,000 | |
Actual direct labor-hours | 66,000 | |
Standard direct labor-hours allowed for the actual output | 63,000 | |
Required:
1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Fixed portion of the predetermined overhead rate to 2 decimal places.)
2. Compute the fixed overhead budget variance and volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.). Input all amounts as positive values.)
1.Fixed portion of predetermined overhead = budgeted fixed overhead / denominator level activity
=>487,500/65,000.
=>$7.50.
2.
fixed overhead budget variance = actual fixed overhead - budgeted overhead
=>$480,000-487,500
=>$7,500 (F) Favorable.
fixed overhead volume variance =fixed overhead rate *(denominator hours - standard hours allowed)
=>$7.50*(65,000-63,000)
=>$15,000 (U).unfavorable
Primara Corporation has a standard cost system in which it applies overhead to products based on...
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 515,900 $ 509,000 67,000 68,000 65,000 Required: 1. Compute the...
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year $ 515,900 Actual fixed overhead cost for the year $ 509,000 Budgeted direct labor-hours (denominator level of activity) 67,000 Actual direct labor-hours 68,000 Standard direct labor-hours allowed for the actual output 65,000 Required: 1. Compute the...
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year $ 515,900 Actual fixed overhead cost for the year $ 509,000 Budgeted direct labor-hours (denominator level of activity) 67,000 Actual direct labor-hours 68,000 Standard direct labor-hours allowed for the actual output 65,000 Required: 1. Compute the...
Check Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 501,600 $495.000 66,000 67,000 66.000 Required: 1. Compute the...
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 459,900 $ 453,000 63,000 64,000 61,000 Required: 1. Compute the...
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year $ 501,600 Actual fixed overhead cost for the year $ 495,000 Budgeted direct labor-hours (denominator level of activity) 66,000 Actual direct labor-hours 67,000 Standard direct labor-hours allowed for the actual output 64,000 Required: 1. Compute the...
Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: $ 481,600 472,000 56,000 57,000 54,000 Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output Required: 1. Compute the fixed...
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Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $467,500 $458,000 55,000 56,000 53,000 Required: 1. Compute the fixed portion...
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