The reasons on price of SUVs being very high in Country U which resulted in ‘Chicken Tariff”. Introduction: The Chicken Tariff is otherwise called the Chicken Tax, is a 25% taxes on imported light trucks. It was forced on brandy, potato starch, and dextrin and so on. Anyway it was later lifted, just for light trucks this expenses was remained.

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The predetermined overhead rate for RON Company is $10, comprised of a variable overhead rate of $6 and a fixed rate of $4. The amount of budgeted overhead costs at a normal capacity of $300,000 was divided by the normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $10. Actual overhead for July was $40,000 variable and $28,200 fixed, and the standard hours allowed for the product produced in July was 7,000 hours. The total overhead variance is: A. $6,100 U B. $1,100 U C. $500 U D. $1,800 F. I want answer

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Chapter 7.1, Problem 1DYK

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To Discuss: The reasons on price of SUVs being very high in Country U which resulted in ‘Chicken Tariff”.

Introduction: The Chicken Tariff is otherwise called the Chicken Tax, is a 25% taxes on imported light trucks. It was forced on brandy, potato starch, and dextrin and so on. Anyway it was later lifted, just for light trucks this expenses was remained.

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The predetermined overhead rate for RON Company is $10, comprised of a variable overhead rate of $6 and a fixed rate of $4. The amount of budgeted overhead costs at a normal capacity of $300,000 was divided by the normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $10. Actual overhead for July was $40,000 variable and $28,200 fixed, and the standard hours allowed for the product produced in July was 7,000 hours. The total overhead variance is: A. $6,100 U B. $1,100 U C. $500 U D. $1,800 F. I want answer

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