A manufacturer of industrial equipment has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Denominator Level of Activity	3,900 MHs
Standard Overhead Costs at the Denominator Activity Level:
Variable Overhead Cost	$33,345
Fixed Overhead Cost	$61,425

The following data pertain to operations for the most recent period:

Actual Hours	3,900 MHs
Standard Hours Allowed for the Actual Output	3,952 MHs
Actual Total Variable Overhead Cost	$32,565
Actual Total Fixed Overhead Cost	$60,675

a.	Calculate the Predetermined OverHead Application Rates [POHAR], each rounded to 2 decimals?

b.	Determine the fixed overhead variances

c. How much overhead (in total), was applied to products during the period? Show the breakdown.

. Manufacturing Overhead .

                     |

                     |

                     |

                  Fixed

       Actual Budget Applied

       Explain the impact of the volume variance.

Answer rating: 100% (QA)

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