A company's budgeted varlable manufacturing overhead cost Is $1.05 per machine-hour and Its budgeted fixed manufacturingoverhead Is $27,094 per month.The following information is avallable for a recent month:a. The denominator activity of 8,740 machine-hours is used to compute the predetermined overhead rate.b. At a denominator activity of 8.740 machine-hours, the company should produce 3,800 unlts of product.C. The company's actual operating results were:Number of units producedActual machine-hoursActual variable manufacturing overhead costActual fixed manufacturing overhead cost4,22010,050$12,060.00$26,400.00Required:1. Compute the predetermined overhead rate and break It down Into varlable and fixed cost elements. (Round your answers to 2declmal places.)2. Compute the standard hours allowed for the actual production.3. Compute the varlable overhead rate and efficlency varlances and the fixed overhead budget and volume varlances. (Indicate theeffect of each verlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input allamounts as positive values. Round your Intermedlate calculatlons and final answers to 2 decimal places.)1. Predetermined overhead rateper MHVariable elementper MHFixed elementper MH2. Standard hours allowed for the actual productionMHs3. Variable overhead rate varianceVariable overhead efficiency varianceFixed overhead budget varianceFixed overhead volume variance

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Description: A company's budgeted varlable manufacturing overhead cost Is $1.05 per machine-hour and Its budgeted fixed manufacturingoverhead Is $27,094 per month.The following information is avallable for a recent month:a. The denominator activity of 8,740 mach

Answer 1) Predetermined Overhead Rate = Total Overhead / Machine hours Total Overhead = Variable…

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ny's budgeted varlable manufacturing overhead cost Is $1.05 per machine-hour and its budgeted d is $27,094 per month. wing Information Is avallable for a recent month: enominator activity of 8,740 machine-hours Is used to compute the predetermined overhead rate enominator activity of 8,740 machine-hours, the company should produce 3,800 units of produc ompany's actual operating results were:

ny's budgeted varlable manufacturing overhead cost Is $1.05 per machine-hour and its budgeted d is $27,094 per month. wing Information Is avallable for a recent month: enominator activity of 8,740 machine-hours Is used to compute the predetermined overhead rate enominator activity of 8,740 machine-hours, the company should produce 3,800 units of produc ompany's actual operating results were:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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