Question: The predetermined overhead rate for Bramble Corp. is $4, comprised of a variable overhead rate of $2 and a fixed rate of $2. The
The predetermined overhead rate for Bramble Corp. is $4, comprised of a variable overhead rate of $2 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $120000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $4. Actual overhead for June was $9000 variable and $5900 fixed, and 2000 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is $2000 F. $1100 F. $1100 U. $2000 U.
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