All Clean of Alberta manufactures individual shampoos for hotel/motel clientele. The fixed manufacturing overhead costs for 2012 will total $576,000. The company uses good units finished for fixed overhead allocation and anticipates 300,000 units of production. Good units finished average 92 percent of total units produced. During January, 20,000 units were produced. Actual fixed overhead cost per good unit averaged $2.82 in January.
Required:
a. Determine the fixed overhead rate for 2012.
b. Determine the fixed overhead static-budget variance for January.
c. Determine the fixed overhead production-volume variance for January.
d. Determine the fixed overhead rate variance for January.

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The Answer of All Clean of Alberta manufactures individual shampoos for hotel/motel clientele. The fixed manufacturing overhead costs for 2012 will total $576,000. The company uses good units finished for fixed overhead allocation and anticipates 300,000 units of production. Good units finished average 92 percent of total units produced. During January, 20,000 units were produced. Actual fixed overhead cost per good unit averaged $2.82 in January.
Required:
a. Determine the fixed overhead rate for 2012.
b. Determine the fixed overhead static-budget variance for January.
c. Determine the fixed overhead production-volume variance for January.
d. Determine the fixed overhead rate variance for January.

All Clean of Alberta Manufactures Individual Shampoos for Hotel/motel Clientele