Business, 17.04.2021 23:50 daedae11142
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 $530,400
Actual fixed overhead cost for the year $521,000
Budgeted standard direct labor-hours (denominator level of activity) 68,000
Actual direct labor-hours 69,000
Standard direct labor-hours allowed for the actual output 66,000
Required:
1. Compute the fixed portion of the predetermined overhead rate for the year.
2. Compute the fixed overhead budget variance and volume variance.
Answers: 2
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Primara Corporation has a standard cost system in which it applies overhead to products based on the...
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