Compute the predetermined variable overhead rate and the predetermined fixed overhead rate Stevens door mat. Stevens uses a standard cost system and determines that it should take one hour of direct labor to produce one door mat. The normal production capacity for this mat is 125,000 units per year. The total budgeted overhead at normal capacity is 1,062,500 comprised of 437,500 of variable costs and 625,000 of fixed costs. It applies overhead on the basis of direct labor hours. During the current year, produced 73,100 mats, worked 86,700 direct labor hours, and incurred variable overhead costs of 186,405 and fixed overhead costs of 562,350.

< Deluxe, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Deluxe allocates manufacturing overhead to production based on standard direct labor hours. Deluxe reported the following actual results for 2024: actual number of units produced, 1,000, actual variable overhead, $5,000, actual fixed overhead, $3,200; actual direct labor hours, 1,400. Read the requirements Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours Print The fixed overhead cost variance is The fixed overhead volume variance is $2,100 $2,800 1,400 hours 700 units 2 hours per unit Done Requirements 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable irect labor hour was sed Print Done because the total fixed overhead cost was because…

Mike. Inc has two products A and B. The budgeted fixed manufacturing overhead is $10,000. The departmentis expected to work in full capacity. It plans to use cost-based pricing by using the absorption method. Assumethe firm can produce and sell 1,000 units Product A and 1,000 units Product B.                                                                               Product A   Product BDirect Materials                                                                 $3           $2Direct Labor                                                                       $1           $3Variable Manufacturing Overhead                                    $2            $1Budgeted labor hours used for each unit product                1              4Budgeted machine hours used for each unit product          3              1Sale Demand                                                                1,000      1,000                                                                   Product A…

Hamid Ltd produces two products – shoes and belts. At present the company uses absorption costing, based on a labour hours rate, to establish the production overhead costs. The budgeted information for Period 4 is shown below. Product Shoes Belts Production in units 6000 5000 Machine hours per unit 5 hrs 6 hours Labour Hour per unit 3 hours 7 hours   The overhead and cost driver information for Period 4 is shown below. Activity Cost in (£) Product Inspection 46,200 Machine Set-up 21,000 Machine maintenance 20,800 Handling and Packaging 26,400   Additional information Product inspection – one in every ten products is inspected. Machine set-up – the company uses a single machine to produce both products. For period 4, 300 setups will be made that will be shared equally between both the products. Machine maintenance – this is based on a predetermined number of machine hours. Product handling and packaging – each product…