Item Rate LINK TO TEXT The information shown below was taken from the annual man
ID: 2460161 • Letter: I
Question
Item
Rate
LINK TO TEXT
The information shown below was taken from the annual manufacturing overhead cost budget of Samantha Company.Variable manufacturing overhead costs $42,687 Fixed manufacturing overhead costs $15,147 Normal production level in labor hours 13,770 Normal production level in units 4,590 Standard labor hours per unit 3
During the year, 4,470 units were produced, 14,700 hours were worked, and the actual manufacturing overhead was $58,022. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours.
Explanation / Answer
Compute the total, fixed, and variable predetermined manufacturing overhead rates. (Round answers to 2 decimal places, e.g. 1.25.) Item Rate Variable overhead $ =Variable Overhead Budgeted/Budgeted Labor Hours X Actual Labor Hours/No. of units produced 10.19 $ Fixed overhead $ =Fixed Overhead Budgeted/Budgeted Labor Hours X Actual Labor Hours/No. of units produced 3.62 $ Total overhead $ 13.81 $ LINK TO TEXT Your answer is partially correct. Try again. Compute the total, controllable, and volume overhead variances. Total overhead variance $ 3708.7 Favourable Overhead controllable variance $ 5366.15 Favourable Overhead volume variance $ 1657.45 Unfavourable
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