Direct Materials, 3 yards at $6 per yard $18
Direct labor 4 hrs at $15.50 per hr 62
Variable overhead, 4 hrs at $1.50 per hr 6
Fixed overhead, 4 hrs at $5 per hr 20
Total standard cost per unit $106
Manufacturing overhead is applies to production on the basis of stand direct labor hrs. During the year, the company worked 37,000 hrs and manufactured 9500 units of product.
Actual fixed overhead $198,700, Volume variance, 10,000 U
1. what were the standard hrs allowed for the years prodcution?
2. what was the amount of fixed overhead cost contained in the flexible budget for the year?
3.What was the fixed overhead budget variance for the year? 4. Whta denominator activity level did the company use in setting the predetermined overhead rate for the year?