Question

Check my work Selected information relating to Yost Company's operations for the most recent year is given below Activity: Denominator activity (machine-hours) Standard hours allowed per unit Actual number of units produced 21,100 2.1 9,000 Costs: Actual fixed overhead costs incurred 64,000 Fixed overhead budget variance $ 1,410 F The company applies overhead cost to products on the basis of standard machine-hours. Required: 1. What were the standard machine-hours allowed for the actual number of units produced? 2. What was the total budgeted fixed overhead cost for the period? 3. What was the fixed portion of the predetermined overhead rate? (Round"Predetermined overhead rate" to 2 decimal place.) 4. What was the fixed overhead volume variance? (Indicate the effect of variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard machine-hours allowed for the actual number of units produced MHs 2. Budgeted fixed overhead cost 3. Fixed portion of the predetermined overhead rate per MH 4. Fixed overhead volume variance

Answer 1

(1)standard hours allowed for actual numbers of units produced

=9000*2.1

=18900 hour

(2) fixed overhead budget variance = Actual fixed overhead-budgeted fixed overhead

-1410 =64000- budgeted fixed overhead

=65410$

(3)

pre determined overhead rate = budgeted overhead /machine hours

=65410/21100

=3.1$ per MH

(4)fixed overhead volume variance

budgeted fixed cost-applied fixed cost

=65410-(18900*3.1)

=65410-58590

=6820 favorable [ as the applied fixed cost are lesser than budgeted the variance is favorabale]