Accurate-time Company makes watches.The fixed overhead costs for 2018 total $444 000.The company uses direct labour-hours for fixed overhead allocation and anticipates 14 800 hours during the year for 780 000 units.An equal number of units is budgeted for each month.
During October,58 000 watches were produced and $28 000 was spent on fixed overhead.
Required:
a.Determine the fixed overhead rate for 2018 based on the units of input.
b.Determine the fixed overhead static-budget variance for October.
c.Determine the production-volume overhead variance for October.
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Question

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The Answer of Accurate-time Company makes watches.The fixed overhead costs for 2018 total $444 000.The company uses direct labour-hours for fixed overhead allocation and anticipates 14 800 hours during the year for 780 000 units.An equal number of units is budgeted for each month.
During October,58 000 watches were produced and $28 000 was spent on fixed overhead.
Required:
a.Determine the fixed overhead rate for 2018 based on the units of input.
b.Determine the fixed overhead static-budget variance for October.
c.Determine the production-volume overhead variance for October.
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Accurate-Time Company Makes Watches