Rostand inc operates a delivery service for over 70

Reference no: EM13585738

Rostand Inc. operates a delivery service for over 70 restaurants. The corporation has a fleet of vehicles and has invested in a sophisticated, computerized communications system to coordinate its deliveries. Rostand has gathered the following actual data on last year's delivery operations:

Rostand employs a standard costing system. During the year, a variable overhead rate of $5.10 per hour was used. The labor standard requires 0.80 hour per delivery.

Assume that the actual fixed overhead was $403,400. Budgeted fixed overhead was $400,000, based on practical capacity of 32,000 direct labor hours.

1.Calculate the standard fixed overhead rate based on budgeted fixed overhead and practical capacity. Round your answer to two decimal places.
$12.50

2.Compute the fixed overhead spending and volume variances.

Image text transcribed for accessibility Rostand Inc. operates a delivery service for over 70 restaurants. The corporation has a fleet of vehicles and has invested in a sophisticated, computerized communications system to coordinate its deliveries. Rostand has gathered the following actual data on last year's delivery operations: Rostand employs a standard costing system. During the year, a variable overhead rate of $5.10 per hour was used. The labor standard requires 0.80 hour per delivery. Assume that the actual fixed overhead was $403,400. Budgeted fixed overhead was $400,000, based on practical capacity of 32,000 direct labor hours. Calculate the standard fixed overhead rate based on budgeted fixed overhead and practical capacity. Round your answer to two decimal places. $ 12.50 Compute the fixed overhead spending and volume variances.

Reference no: EM13585738

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