Carlton Corporation uses a standard cost system that applies overhead to products based on the standard direct labor hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixes overhead cost for the year $400,000 Actual fixed overhead cost for the year $394,000 Budgeted standard direct labor hours (denominator level of 50,000 activity) Actual direct labor hours 51,000 Standard direct labor hours allowed for the actual output 48,000 Required: A. Compute the fixed portion of the predetermined overhead rate for the year. B. Compute the fixed overhead budget and volume variances.

Carlton Corporation uses a standard cost system that applies overhead to products based on the standard direct labor hours allowed for the actual output of the period. Data concerning the most recent year appear below: Total budgeted fixes overhead cost for the year $400,000 Actual fixed overhead cost for the year $394,000 Budgeted standard direct labor hours (denominator level of 50,000 activity) Actual direct labor hours 51,000 Standard direct labor hours allowed for the actual output 48,000 Required: A. Compute the fixed portion of the predetermined overhead rate for the year. B. Compute the fixed overhead budget and volume variances.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 58E: At the beginning of the year, Lopez Company had the following standard cost sheet for one of its...

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