Weller Company'svariable manufacturing overhead should be $1.90 per standardmachine-hour and its fixed manufacturing overhead should be $87,000per month. The following information is available for a recentmonth:
a. The denominatoractivity of 34,800 machine-hours was chosen to compute thepredetermined overhead rate.
b. At the 34,800standard machine-hours level of activity, the company shouldproduce 12,000 units of product.
c. The companyâs actualoperating results were as follows:
Number of unitsproduced 12,930 Actual machine-hours 36,030
Actual variablemanufacturing overhead cost $ 72,060
Actual fixedmanufacturing overhead cost $ 85,300
Required:
1. Compute the predetermined overhead rate and break itdown into variable and fixed cost elements. (Round your answers to2 decimal places.)
Predetermined overhead rate $ per MH
Variable element $ per MH
Fixed element $ per MH
2. What were the standard hours allowed for the yearâsactual output? (Round your intermediate calculations to 2 decimalplaces.)
Standard hours MHs
3. Compute the variable overhead efficiency and ratevariances and the fixed overhead budget and volume variances.(Leave no cells blank - be certain to enter "0" wherever required.Input all amounts as positive values. Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Round your intermediatecalculations and final answers to 2 decimal places.)
Variable overhead efficiency variance $
Variable overhead rate variance $
Fixed overhead budget variance $
Volume variance $