Question: Chasman Corporation estimated overhead for the year as follows fixed

Chasman Corporation estimated overhead for the year as follows: fixed = $330,000, variable = $2.50 per unit. Chasman expected to produce 60,000 units for the year.
a. Compute the rate that will be used to apply overhead costs to products.
b. During the year, Chasman incurred actual overhead costs of $430,000 and produced 65,000 units. Compute the overhead applied to units produced.
c. Compute the amount of under- or overapplied overhead and the spending and volume variances.
d. What caused the applied overhead to be different from the actual overhead?


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  • CreatedApril 17, 2014
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