Primara Corporation has a standard cost system in which it applies overhead to p
ID: 2458423 • Letter: P
Question
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:
Compute the fixed portion of the predetermined overhead rate for the year
Compute the fixed overhead budget variance and volume variance
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:
Explanation / Answer
Compute the fixed portion of the predetermined overhead rate for the year
Compute the fixed overhead budget variance and volume variance
1.Compute the fixed portion of the predetermined overhead rate for the year
Fixed overhead 467500 Denominator level of activity 55000 Fixed portion of the predetermined overhead rate 8.5Compute the fixed overhead budget variance and volume variance
Budget Variance Actual fixed overhead cost for the year 458000 Budgeted fixed overhead cost 467500 Budget variance 9500 Volume Variance Fixed portion of the predetermined overhead rate 8.5 Denominator hours 55000 Standard hours allowed 53000 Volume variance 2000Related Questions
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