Severstone's production budget for July cated for making 39,400 units of a single product. The firm's...

  

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Severstone's production budget for July cated for making 39,400 units of a single product. The firm's production standards allow one-half of a machine hour per unit produced. The fixed overhead budget for July was $35.460. Silverstone uses an absorption costing system. Actual activity and costs for July were: Units produced E Fixed overhead costs incurred Required: a. Calculate the predetermined fixed overhead application rate per machine hour that would be used in July (Round your answer to 2 decimal places. Prodetermined overhead application rate 36,680 $ 37,600 Machine hours allowed b. Calculate the number of machine hours that would be allowed for actual July production, per machme hour c. Calculate the fixed overhead applied to work in process during July. (Do not round intermediate calculations.). Applied overhead fixed overhead d. Calculate the over- or underapplied fixed overhead for July (Do not round intermediate calculations.) e. Calculate the fixed overhead budget and volume variances for July. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variances Severstone's production budget for July cated for making 39,400 units of a single product. The firm's production standards allow one-half of a machine hour per unit produced. The fixed overhead budget for July was $35.460. Silverstone uses an absorption costing system. Actual activity and costs for July were: Units produced E Fixed overhead costs incurred Required: a. Calculate the predetermined fixed overhead application rate per machine hour that would be used in July (Round your answer to 2 decimal places. Prodetermined overhead application rate 36,680 $ 37,600 Machine hours allowed b. Calculate the number of machine hours that would be allowed for actual July production, per machme hour c. Calculate the fixed overhead applied to work in process during July. (Do not round intermediate calculations.). Applied overhead fixed overhead d. Calculate the over- or underapplied fixed overhead for July (Do not round intermediate calculations.) e. Calculate the fixed overhead budget and volume variances for July. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variances

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