Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 426,4e0 $420,4ee 52,eee 53,eee se, eee Requlred: 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Flxed portlon of the predetermIned overhead rate to 2 declmal places.) 2 Compute the fixed overhead budget variance and volume variance. (Indlcate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance.). Input ell amounts as posltlve values.) 1. Fixed portion of the predetermined overhead rate per DLH 2. Budget variance Volume variance

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours
allowed for the actual output of the period. Data concerning the most recent year appear below:
Total budgeted fixed overhead cost for the year
Actual fixed overhead cost for the year
Budgeted direct labor-hours (denominator level of activity)
Actual direct labor-hours
Standard direct labor-hours allowed for the actual output
$ 426,4e0
$ 420,400
52,ee0
53,000
50,000
Requlred:
1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Flxed portion of the predetermIned overhead
rate to 2 declmal places.)
2 Compute the fixed overhead budget variance and volume variance.. (Indicate the effect of each varlance by selecting "F" for
favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance.). Input ell amounts as positlve values.)
1. Fixed portion of the predetermined overhead rate
per DLH
2. Budget variance
Volume variance
Transcribed Image Text:Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year Budgeted direct labor-hours (denominator level of activity) Actual direct labor-hours Standard direct labor-hours allowed for the actual output $ 426,4e0 $ 420,400 52,ee0 53,000 50,000 Requlred: 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Flxed portion of the predetermIned overhead rate to 2 declmal places.) 2 Compute the fixed overhead budget variance and volume variance.. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance.). Input ell amounts as positlve values.) 1. Fixed portion of the predetermined overhead rate per DLH 2. Budget variance Volume variance
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