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Question - Waterway Pet Clinic charges its patients on the basis of actual direct costs incurred plus fixed costs at the rate of $41 per hour. The fixed cost rate of $41 per hour is based on the assumption of 5,500 patient hours monthly, assuming that each patient requires a half hour. During September, 10,040 patients were seen and the following costs were recorded.
Fixed overhead costs allocated to patients $234,520
Fixed overhead spending variance 26,400 Unfavourable
Required -
1. How many patient hours were recorded?
2. What was the budgeted fixed cost?
3. What was the production volume variance?
4. What was the actual fixed overhead?
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