Question: Bobcat Inc.s total predetermined overhead rate is $50 per hour based on a monthly capacity of 58,000 machine hours. Overhead is 30 percent variable and

Bobcat Inc.’s total predetermined overhead rate is $50 per hour based on a monthly capacity of 58,000 machine hours. Overhead is 30 percent variable and 70 percent fixed.

During September 2010, Bobcat Inc. produced 5,100 units of product and recorded 60,000 machine hours. September’s actual overhead cost was $2,927,000. Each unit of product requires 12 machine hours.

a. What were standard hours for September?

b. What is total monthly budgeted fixed overhead cost?

c. What is the controllable overhead variance?

d. What is the noncontrollable overhead variance?

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