Zotta Enterprises makes a single product called a "gower" in its Doxville facilities. The company uses standard costing and applies overhead cost to products on a basis of direct labor hours. Budgeted and actual data relating to 1999 follow:
Actual fixed factory overhead cost, $38,900
Denominator hours, 20,000
Standard hours allowed for one gower, 1.2 hours
Gowers produced during the year, 17,000 units Fixed overhead budget variance, $ 1 ,300 U
The budgeted fixed factory overhead cost for 1999 would be
The standard direct labor hours allowed for 1999' s production of gowers would be
The fixed factory overhead cost applied to products during 1999 would be
Question 1
Information on Westcott Company's direct-labor costs is as follows:
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Standard direct labor rate
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$3.75
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Actual direct labor rate
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3.32
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Standard direct labor hours
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10,000 hours
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Direct labor efficiency variance
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$4,000 unfavorable
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The actual hours worked were