The standard cost card for the single product manufactured by Cutter, Incorporated, is given below:
Manufacturing overhead is applied to production based on standard direct laborhours. During the year, the company worked
hours and manufactured units. Selected data relating to the company's fixed manufacturing overhead cost for the year are
shown below:
Actual Fixed Overhead $
Budgeted Fixed Overhead
Fixed Overhead Applied to Work in Process hours $ per hour $
Budget variance $
Volume variance $
Required:
What were the standard hours allowed for the year's production?
What was the amount of budgeted fixed overhead cost?
What was the fixed overhead budget variance?
Note: Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero
variance Input all amounts as positive values.
What denominator activity level did the company use in setting the predetermined overhead rate?
