The predetermined overhead rate for Skysong Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $4736 variable and $800 fixed, and 800 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is $384 U. O $960 U. O $960 F. $384 F.

The predetermined overhead rate for Skysong Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $4736 variable and $800 fixed, and 800 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is $384 U. O $960 U. O $960 F. $384 F.

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Description: The predetermined overhead rate for Skysong Company is $5, comprised of a variable overhead rate of $3 anda fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided bynormal capacity of 30000 direct labor hou

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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