Exercise 10A-5 Using Fixed Overhead Variances [LO10-4] The standard cost card for the single product manufactured by Cutter, Inc., is given below: Standard Cost Cardper Unit Direct materials, 3.6 yards at $3.00 per yard $ 10.80 Direct labor, .7 hours at $16.00 per hour 11.20 Variable overhead, .7 hours at $2.00 per hour 1.40 Fixed overhead, .7 hours at $5.00 per hour 3.50 Total standard cost per unit $ 26.90 Manufacturing overhead is applied to production on the basis of standard direct labor-hours. During the year, the company worked 8,460 hours and manufactured 11,800 units of product. Selected data relating to the companys fixed manufacturing overhead cost for the year are shown below:

Actual Fixed Overhead Budgeted Fixed Overhead Fixed Overhead Applied to Work in Process $40,000 ? ? hours $ ? per hour = $ ? Budget variance, $? Volume variance, $3,300 F Required:

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