Sedona Company set the following standard costs for one unit

Sedona Company set the following standard costs for one unit of its product for 2015. Direct material (20 lbs. $3.20 per lb.) Direct labor (10 hrs. $8.30 per hr.) Factory variable overhead (10 hrs. @$4.70 per hr.) Factory fixed overhead (10 hrs. $2.30 per hr.) S 64.00 83.00 47.00 23.00 Standard cost 217.00 The $7.00 (4.70S2.30) total overhead rate per direct labor hour is based on an expected operating level equal to 60% of the factory\'s capacity of 57,000 units per month. The following monthly flexible budget information is also available Operating Levels (% of capacity) Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars) 55% 60% 65% 31,350 313,500 34,200 342,000 37,050 370,500 Variable overhead Fixed overhead $ 1,473,450 1,607,400 1,741,350 786,600 786,600 786,600 Total overhead S 2,260,050 2,394,000 2,527,950 During the current month, the company operated at 55% of capacity, employees worked 295,000 hours, and the following actual overhead costs were incurred. (Do not round intermediate calculations. Round .\'?? costs per hour\" to 2 decimal places.) Variable overhead costs Fixed overhead costs $1,411,000 858,050 Total overhead costs $2,269,050 (1) Compute the predetermined overhead application rate per hour for variable overhead, fixed overhead, and total overhead at 60% of ?? Predetermined OH rate Variable overhead costs Fixed overhead costs Total overhead costs (2) Compute the total variable and total fixed overhead variances At 55% of operating capacity- Standard DL Hours Overhead costsActual results Variance Fav./Unf applied Variable overhead costs Fixed overhead costs Total overhead costs

Solution

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. 1. Total Overhead Hours Predeterminded Overhead Rate Variable Overhead 1607400 342000 4.7 Fixed Overhead 786600 342000 2.3 Total Overhead 2394000 342000 7 2. Standard DL Hours Overhead Cost Applied Actual Results Variance Fav/Un Variable Overhead 4.7 313500 1473450 1411000 62450 Favorable Fixed Overhead 2.3 313500 721050 858050 137000 Unfavorable Total Overhead 7 313500 2194500 2269050 74550 Unfavorable