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Norwall company variable manufacturing overhead should be $3.00 per standard machine hr and its fixed manufacturing overhead should be $300,000 per period. The following information is available for a recent period.
a.The denominator activity of 60,000 machine hrs is used to compute the predetermined overhead rate.b. At the 60,000 standard machine hrs level of activity the company shoudl produce 40,000 units of products.c. The companys actual operating results wereNumber of units produced 42,000Actual machine hrs 64,000Actual variable overhead cost 185,600Actual fixed overhead cost 302,400
1. Compute the predetermined overhead rate and break it down into variable and fixed cost elements. 2.Compute the standard hrs allowed for the actual production. 3. COmpute the variable overhead rate and efficency variances and the fixed overhad budget and volume variances.
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