Silverstone's production budget for July called for making 38,000 units of a single product. The firm's...

 

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Silverstone's production budget for July called for making 38,000 units of a single product. The firm's production standards allow one-half of a machine hour per unit produced. The fixed overhead budget for July was $33,060. Silverstone uses an absorption costing system. Actual activity and costs for July were: Units produced Fixed overhead costs incurred Required: a. Calculate the predetermined fixed overhead application rate per machine hour that would be used in July. (Round your answer to 2 decimal places.) Predetermined overhead application rate per machine hour 34.610 $ 37,200 b. Calculate the number of machine hours that would be allowed for actual July production. Machine hours allowed c. Calculate the fixed overhead applied to work in process during July. (Do not round intermediate calculations.) Applied overhead d. Calculate the over- or underapplied fixed overhead for July. (Do not round intermediate calculations.) fixed overhead Calculate the fixed overhead budget and volume variances for July. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance).) Fixed overhead budget variance Fixed overhead volume variances Silverstone's production budget for July called for making 38,000 units of a single product. The firm's production standards allow one-half of a machine hour per unit produced. The fixed overhead budget for July was $33,060. Silverstone uses an absorption costing system. Actual activity and costs for July were: Units produced Fixed overhead costs incurred Required: a. Calculate the predetermined fixed overhead application rate per machine hour that would be used in July. (Round your answer to 2 decimal places.) Predetermined overhead application rate per machine hour 34.610 $ 37,200 b. Calculate the number of machine hours that would be allowed for actual July production. Machine hours allowed c. Calculate the fixed overhead applied to work in process during July. (Do not round intermediate calculations.) Applied overhead d. Calculate the over- or underapplied fixed overhead for July. (Do not round intermediate calculations.) fixed overhead Calculate the fixed overhead budget and volume variances for July. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance).) Fixed overhead budget variance Fixed overhead volume variances

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Budgeted Machine Hr 380005019000 Predetermined Overhead Application RateEs... View the full answer