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Creative Engraving employs a standard costing system that applies overhead to jobs based on standard...

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Accounting

Creative Engraving employs a standard costing system that applies overhead to jobs based on standard machine-hours allowed for actual output of the period. During a recent month, the following information was recorded:
Total budgeted fixed overhead cost for the month $ 20,000
Actual fixed overhead cost for the month $ 19,000
Budgeted (denominator) standard machine-hours for the month 10,000
Actual machine-hours 9,800
Standard machine-hours allowed for the actual output 9,900
Required:
1. Compute the fixed portion of the predetermined overhead rate for the year.
2. Compute the fixed overhead budget and volume variances.
Note: Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).
3. What is the dollar amount of underapplied or overapplied fixed overhead for the month?

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