Question 1: The managerial accountant at Sailboat World compiles a monthly overhead variance report. The company produced 30,584 sailboats in the past month at 0.28 machine hours per unit. The budgeted fixed overhead cost was $95,000 whereas actual fixed overhead cost was $96,400. Calculate the standard fixed overhead cost allocated to production at $11 per machine-hour. Compute the fixed overhead volume variance and the fixed overhead budget variance.
Question 2: DOT Safety Systems manufactures motorcycle helmets. What is the standard quantity of material used to manufacture each helmet if the material required is 1.2 pounds, and DOT allows for .25 pounds of waste and .35 pounds of rejected material?
Question 3: Howard Industries' actual direct labor cost was $67,000 during the current period. Howard reported an unfavorable direct labor rate variance of $1,800 and a favorable direct labor efficiency variance of $2,900. What was the standard direct labor cost for actual output during the period?