c$.$ Determine before$-$tax profit at theoretical, practical, and normal capacity.

Note: Only use a negative sign with any volume variance that is subtracted to arrive at Cost of Goods Sold, adjusted.

d$.$ Reconcile the difference between before$-$tax profit at theoretical and practical capacity.

Note: Do not use negative signs with any of your answers below.

The difference equals the change in inventory $($

$\backslash (\backslash$boldsymbol$\{$X$\}\backslash ))$ times the difference in$(\backslash$$ $\backslash ($ x $\backslash )).$

Reconcile the difference between before$-$tax profit at practical and normal capacity.

The difference equals the change in inventory $()$ times the difference in FOH rates $(\backslash$$ $\backslash (\backslash$times $\backslash )).$ Capacity measurements; before$-$tax profit

The following predictions were made in the prior year for one of the plants of Windsor Inc.

Actual results for the month of January were as follows.

Assume a sales price per unit of $\backslash (\backslash$$ $6\backslash )$ and fixed selling and administrative expenses of $\backslash (\backslash$$ $55,000\backslash ).$ Cost of goods sold at standard is $\backslash (\backslash$$ $183,600,\backslash$$ $199,920\backslash ),$ and $\backslash (\backslash$$ $204,000\backslash ),$ at theoretical, practical, and normal capacity, respectively.

a$.$ Calculate the budgeted FOH rate based upon theoretical, practical, and normal capacity.

b$.$ What is the volume variance in January, if the budgeted FOH rate is based upon theoretical, practical, and normal capacity? Use the FOH rates exactly as shown above in part a$.$ Assume that budgeted FOH is incurred evenly throughout the year.

Note: Enter any unfavorable variances with a negative sign.