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Primara Corporation has a standard cost system In which It apples overhead to products based on the standard direct labor-hours allowed for the actual output of the perlod. Data concerning the most recent year appear below. Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year $ 467,500 $ 458,000 Budgeted direct labor-hours (denominator level of activity) 55,000 Actual direct labor-hours 56,000 Standard direct labor-hours allowed for the actual output 53,000 Requlred: 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Flxed portlon of the predetermined overhead rate to 2 decimal places.) 2 Compute the fixed overhead budget varlance and volume varlance. (Indlcate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance.). Input all amounts as positive values.) 1. Fixed portion of the predetermined overhead rate per DLH 2. Budget variance Volume variance

Primara Corporation has a standard cost system In which It apples overhead to products based on the standard direct labor-hours allowed for the actual output of the perlod. Data concerning the most recent year appear below. Total budgeted fixed overhead cost for the year Actual fixed overhead cost for the year $ 467,500 $ 458,000 Budgeted direct labor-hours (denominator level of activity) 55,000 Actual direct labor-hours 56,000 Standard direct labor-hours allowed for the actual output 53,000 Requlred: 1. Compute the fixed portion of the predetermined overhead rate for the year. (Round Flxed portlon of the predetermined overhead rate to 2 decimal places.) 2 Compute the fixed overhead budget varlance and volume varlance. (Indlcate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance.). Input all amounts as positive values.) 1. Fixed portion of the predetermined overhead rate per DLH 2. Budget variance Volume variance

FINANCIAL ACCOUNTING
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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I have a few questions from the  last chapter that still don't understand can i get help.

**Pmara Corporation Overhead Cost Analysis** Pmara Corporation has implemented a standard cost system that applies overhead to products based on standard direct labor-hours. Below is the data for the most recent year: - **Total budgeted fixed overhead cost for the year:** $467,500 - **Actual fixed overhead cost for the year:** $450,000 - **Budgeted direct labor-hours (denominator level of activity):** 55,000 - **Actual direct labor-hours:** 51,000 - **Standard direct labor-hours allowed for the actual output:** 53,000 **Required:** 1. **Compute the fixed portion of the predetermined overhead rate for the year:** (Round the fixed portion of the predetermined overhead rate to 2 decimal places). 2. **Compute the fixed overhead budget variance and volume variance:** (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect, i.e., zero variance. Input all amounts as positive values.) | | | per DLH | |---|---|---| | 1. | Fixed portion of the predetermined overhead rate | | | 2. | Budget variance | | | | Volume variance | |
Transcribed Image Text:**Pmara Corporation Overhead Cost Analysis** Pmara Corporation has implemented a standard cost system that applies overhead to products based on standard direct labor-hours. Below is the data for the most recent year: - **Total budgeted fixed overhead cost for the year:** $467,500 - **Actual fixed overhead cost for the year:** $450,000 - **Budgeted direct labor-hours (denominator level of activity):** 55,000 - **Actual direct labor-hours:** 51,000 - **Standard direct labor-hours allowed for the actual output:** 53,000 **Required:** 1. **Compute the fixed portion of the predetermined overhead rate for the year:** (Round the fixed portion of the predetermined overhead rate to 2 decimal places). 2. **Compute the fixed overhead budget variance and volume variance:** (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect, i.e., zero variance. Input all amounts as positive values.) | | | per DLH | |---|---|---| | 1. | Fixed portion of the predetermined overhead rate | | | 2. | Budget variance | | | | Volume variance | |
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