2.

value: 8.00 points

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

Standard Cost CardPer Unit
Direct materials, 4.1 feet at $3.00 per foot	$	12.30
Direct labor, .7 direct labor-hours at $19.00 per direct labor-hour		13.30
Variable overhead, .7 direct labor-hours at $3.00 per direct labor-hour		2.10
Fixed overhead, .7 direct labor-hours at $5.50 per direct labor-hour		3.85
Total standard cost per unit	$	31.55

Last year, the company produced 13,400 units of product and worked 9,580 actual direct labor-hours. Manufacturing overhead cost is applied to production on the basis of direct labor-hours. Selected data relating to the companys fixed manufacturing overhead cost for the year are shown below:

Fixed Overhead Applied to Work in Process			Budgeted Fixed Overhead			Actual Fixed Overhead
? hours $5.5 per hour = $ ?			?			$46,100

Volume variance = $7,040 F

Budget variance = $?

Required:

1.	What were the standard hours allowed for the years production?

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

3.	What was the budget variance for the year? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).

4.	What denominator activity level did the company use in setting the predetermined overhead rate for the year? (Round intermediate calculations and final answers to 2 decimal places.)