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A summary of Coastal Equipment$$s flexible budget for manufacturing overhead follows:

Cost

Formula Direct Labour$-$Hours $($DLHs$)$

Overhead Costs $($per direct labour$-$hour$)3,5004,0004,500$

Variable cost $ $2\mathrm{.}00$ $ $7,000$ $ $8,000$ $ $9,000$

Fixed cost $42,70042,70042,700$

Total overhead cost $ $49,700$ $ $50,700$ $ $51,700$

The following information is available for a recent period:

The denominator activity of $3,500$ DLHs was chosen to compute the predetermined overhead rate.

At the $3,500$ standard DLH level of activity, the company should produce $1,000$ units of product.

The company$$s actual operating results were as follows:

Number of units produced $1,150$

Actual DLHs $3,950$

Actual variable overhead costs $ $9,810$

Actual fixed overhead costs $ $43,100$

Required:

$1.$ Compute the predetermined overhead rate and break it down into variable and fixed cost elements.

$2.$ What were the standard hours allowed for the year$$s actual output?

Note: Do not round intermediate calculations.

$3.$ Compute the variable overhead spending and efficiency variances and the fixed overhead budget and volume variances.

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places. Indicate the effect of each variance by selecting $"$F$"$ for favourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).$

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