Weller Company\'s variable manufacturing overhead should be $1.90 per standard machine -hour and its fixed manufacturing overhead should be $87,000 per month. The following information is available for a recent month: a. The denominator activity of 34,800 machine-hours was chosen to compute the predetermined overhead rate. b. At the 34,800 standard machine -hours level of activity, the company should produce 12,000 units of product. c. The companys actual operating results were as follows: Number of units produced 12,930 Actual machine -hours 36,030 Actual variable manufacturing overhead cost $ 72,060 Actual fixed manufacturing overhead cost $ 85,300 Required: 1. Compute the predetermined overhead rate and break it down into variable and fixed cost elem ents. (Round your answers to 2 decimal places.) Predetermined overhead rate $ per MH Variable element $ per MH Fixed element $ per MH 2. What were the standard hours allowed for the years actual output? (Round your intermediate calculations to 2 decimal places.) Standard hours MHs 3. Compute the variable overhead efficiency and rate variances and the fixed overhead budget and volume variances. (Leave no cells blank - be certain to e ...
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