Selected information relating to Yost Company's operations for the most recent year is given below: Activity: Denominator
Question:
Selected information relating to Yost Company's operations for the most recent year is given below:
Activity:
Denominator activity (machine-hours) . . . . . . . 45,000
Standard hours allowed per unit . . . . . . . . . . . . . . . . 3
Actual number of units produced . . . . . . . . . . . 14,000
Costs:
Actual fixed overhead costs incurred . . . . . . . . $267,000
Fixed overhead budget variance . . . . . . . . . . . . $3,000 F
The company applies overhead cost to products on the basis of standard machine-hours.
Required:
1. What were the standard machine-hours allowed for the actual number of units produced?
2. What was the total budgeted fixed overhead cost for the period?
3. What was the fixed portion of the predetermined overhead rate?
4. What was the fixed overhead volume variance?
Step by Step Answer:
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer