Static budget fixed overhead
rate
$54,000
/
13,500
=
$4.00 per hour

Requirement 5.
For variable direct batch-level costs, compute the price and efficiency variances.
Begin by calculating the following amounts.
Budgeted Hours Allowed
Actual Hours
for Actual Output
Actual Variable
x
x
Overhead
Budgeted Rate
Budgeted Rate
$316,800
$356,400
$194,400
Compute the price (spending) and efficiency variances.
(Label each variance as favorable (F) or
unfavorable (U).)

Requirement 6.
For fixed overhead costs, compute the spending and the production-volume variances.
Begin by calculating the following amounts.

$56,500
$54,000
$43,200
Compute the spending and production volume variances.
(Label each variance as favorable (F) or
unfavorable (U).)
The spending variance
is $
2,500
U
The production-volume variance
is $
10,800
U
Question is complete.