EXERCISE 10-14 Using Fixed Overhead Variances [L05 Q. LO6Q] The standard cost card for the single product manufactured by Princess Company is given below: Standard Cost Card-Per Unit Direct materials, 2.1 metres at S6 per metre $ 12.60 Direct labour, 0.5 direct labour-hours at $25 per direct labour-hour 12.50 Variable overhead. 0.5 direct labour-hours at S4 per direct labour-hour 2.00 Fixed overhead, 0.5 direct labour-hours at SS per direct labour-hour 4.00 Total standard cost per unit $31.10 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: Actual Fixed Overhead Cost $27,310 Budgeted Fixed Overhead Cost ? Fixed Overhead Cost Applied to Work in Process hours x $8 per hour = $_? ? Budget variance, $? Volume variance, $400 F 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