1.) Rubyor Corporation bases its predetermined overhead rate on variable manufacturing overhead cost of $10.70 per machine-hour and fixed manufacturing overhead cost of $821,104 per period. If the denominator level of activity is 7,300 machine-hours, the variable element in the predetermined overhead rate would be:

A	$121.66
B	$123.18
C	$112.48
	$10.70. (D) 2.) Heroman Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The budgeted fixed manufacturing overhead cost for the most recent month was $26,550 and the actual fixed manufacturing overhead cost for the month was $26,570. The company based its original budget on 5,900 machine-hours. The standard hours allowed for the actual output of the month totaled 5,750 machine-hours. What was the overall fixed manufacturing overhead budget variance for the month? $20 unfavorable $20 favorable $675 unfavorable $675 favorable True/ Flase... An unfavorable volume variance means that a firm operated at an activity level that was above the activity level planned for the period. f the fixed manufacturing overhead volume variance is unfavorable, too much has been spent on fixed manufacturing overhead items. The fixed manufacturing overhead budget variance is not controllable by managers because fixed costs are not controllable The budget variance represents the difference between the actual fixed manufacturing overhead cost incurred during a period and the budgeted fixed manufacturing overhead cost. A volume variance and an efficiency variance are computed for fixed manufacturing overhead costs.