Norwall Companys budgeted variable manufacturing overhead cost is $1.80 per machine-hour and its budgeted fixed...
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Accounting
Norwall Companys budgeted variable manufacturing overhead cost is $1.80 per machine-hour and its budgeted fixed manufacturing overhead is $59,904 per month.
The following information is available for a recent month:
The denominator activity of 24,960 machine-hours is used to compute the predetermined overhead rate.
At a denominator activity of 24,960 machine-hours, the company should produce 10,400 units of product.
The companys actual operating results were:
Number of units produced
11,170
Actual machine-hours
25,690
Actual variable manufacturing overhead cost
$
48,811
Actual fixed manufacturing overhead cost
$
51,100
Required:
1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.)
2. Compute the standard hours allowed for the actual production.
3. Compute the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. (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. Round your intermediate calculations and final answers to 2 decimal places.)
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