Rica's Fleet Feet Inc. produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping department records both variable and fixed overhead costs. The following information pertains to shipping costs for 2013.
1. What is the static-budget number of crates for 2013?
2. What is the flexible-budget number of crates for 2013?
3. What is the actual number of crates shipped in 2013?
4. Assuming fixed overhead is allocated using crate-packing hours, what is the predetermined fixed overhead allocation rate?
5. For variable overhead costs, compute the rate and efficiency variances.
6. For fixed overhead costs, compute the rate and the production-volume variances.

  • CreatedJuly 31, 2015
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