Ingram Production creates 4,500 units. Each unit was expected to require 2.2 labor hours at a cost of $14 per hour. Total labor cost was $143,850 for 10,200 hours worked. Direct labor is measured in labor hours. What is the flexible budget variance for direct labor?

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Westake Advisors is a consulting firm. The firm expects to have $75,000 in indirect costs during the year and bill customers for 10,000 hours. The cost of direct labor is $95 per hour. Calculate the predetermined overhead allocation rate for Westake Advisors

Andy Manufacturing produces plastic and metal kitchen utensils. In preparing the current budget, Andy's management estimated a total of $380,000 in manufacturing overhead costs and 19,000 direct labor hours for the coming year. In December, Andy's accountants reported actual manufacturing overhead incurred of $93,000 and 18,200 direct labor hours used during the year. Andy applies overhead based on direct labor hours. Required: What was Andy's predetermined overhead rate for the year? How much manufacturing overhead did Andy apply during the year?

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