Homework Answers
Solution 1:
Variable predetermined overhead rate = $420,000 / 105000 = $4 per hour
Fixed predetermined overhead rate = $525,000 / 105000 = $5 per hour
Solution 2:
Overhead applied for the year = 80100*1*$ 9 = $720,900
Solution 3:
Total overhead variance = Overhead applied - Actual overhead = $720,900 - ($144,180 + $660,900) = $84,180 U
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