Reference no: EM132561123
Company uses standard costing. The company prepared its static budget for 2018 at 2,500,000 machine hours for the year. Total budgeted overhead cost is $33,500,000. The variable overhead rate is $11 per machine hour ($22 per unit).
Actual result for 2018 as follow:
Machine-hours 2,400,000 hours
Output 1,230,000 units
Variable overhead $27,600,000
Fixed overhead rate variance $1,350,000 U
Question I. Calculate for the fixed? overhead:
a. Budgeted amount.
b. Budgeted cost per? machine-hour.
c. Actual cost.
d. ?Production-volume variance.
Question II. Calculate the variable overhead rate variance and the variable overhead efficiency variance.