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Question - Cakewalk Ltd. delivers shoes in batches. The following information pertains to shipping dance shoes in? June:
Static-budget Amounts
Actual Amounts
Pairs of shoes shipped
? 100,000
120,000
Batch size? (number of pairs per? pallet)
400
500
Packing hours per pallet
0.50
0.40
Variable overhead cost per packing hour?
$16
$15
Total shipping fixed overhead costs
? $4,500
$5,300
Required - What is the Cakewalk Ltd. rate variance for fixed shipping overhead? costs?
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