Answer: $9.21, 4000F, 18,420U
Explanation:
GIVEN THE FOLLOWING ;
Total budgeted fixed overhead cost for the year = $525,100
Actual fixed overhead cost for the year = $521,100
Budgeted direct labor-hours (denominator level of activity) = 59,000
Actual direct Labor hours = 60,000 Standard direct labor-hours allowed for the actual output = 57,000
A.) Fixed portion of predetermined overhead rate = (total budgeted fixed overhead ÷ denominator level of activity)
$525,100 ÷ 57,000 = $9.21 per direct Labor hour
Budget variance = Actual fixed overhead - budgeted fixed overhead
$521,100 - $525,100 = $4000F
Volume variance = fixed portion of predetermined overhead × (denominator hours - standard hours allowed)
$9.21 × (59,000 - 57,000)
$9.21 × (2000)
18,420U
