The standard cost card for the single product manufactured by Princess Company is given below:

Last year, the company produced 6,800 units of product and worked 5,225 actual direct labour-hours. Manufacturing overhead cost is applied to production on the basis of direct labour-hours. Selected data relating to the company's fixed manufacturing overhead cost for the year are shown below:

Required:

1. What were the standard hours allowed for the year's production?

2. What was the amount of budgeted fixed overhead cost for the year?

3. What was the budget variance for the year?

4. What denominator activity level did the company use in setting the predetermined overhead rate for the year?

Transcribed Image Text:

Standard Cost Card-Per Unit Direct materials, 2.1 metres at $6 per metre .. Direct labour, 0.5 direct labour-hours at $25 per direct labour-hour. Variable overhead, 0.5 direct labour-hours at $4 per direct labour-hour. Fixed overhead, 0.5 direct labour-hours at $8 per direct labour-hour Total standard cost per unit $12.60 12.50 2.00 4.00 $31.10 Fixed Overhead Cost Actual Fixed Budgeted Applied to Overhead Cost Fixed Overhead Cost Work in Process $27,310 hours x $8 per hour = $ Budget variance, $? Volume variance, $400 F