Reference no: EM131749175

Question: Norwall Company's variable manufacturing overhead should be $1.05 per standard machine-hour and its fixed manufacturing overhead should be $31,382 per month. The following information is available for a recent month:

a. The denominator activity of 8,840 machine-hours is used to compute the predetermined overhead rate.

b. At the 8,840 standard machine-hours level of activity, the company should produce 3,400 units of product.

c. The company's actual operating results were:

Number of units produced 4,360

Actual machine-hours 9,970

Actual variable manufacturing overhead cost $ 11,964

Actual fixed manufacturing overhead cost $ 30,000

Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. (Round your answers to 2 decimal places.)

2. Compute the standard hours allowed for the actual production.

3. Compute the variable overhead rate and efficiency variances and the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations and final answers to 2 decimal places.)