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World Company expects to operate at 90% of its productive capacity of 17.000 units per...

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Accounting

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World Company expects to operate at 90% of its productive capacity of 17.000 units per month. At this planned level, the company expects to use 9,945 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.650 direct labor hour per unit. At the 90% capacity level, the total budgeted cost includes $29.835 fixed overhead cost and $169,065 variable overhead cost. In the current month, the company incurred $328,200 actual overhead and 9625 actual labor hours while producing 24,900 units. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations. Round "OH costs per DL hour" to 2 decimal places.) (1) Compute the predetermined standard overhead rate for total overhead Predetermined OH rate Variable overhead costs S 17,00 per DL hr Fixed overhead costs 3.00 per DL hr Total overhead costs $ 20.00 per DL hr (2) Compute the total overhead variance Actual production 24,900 units Overhead costs Actual results Variance applied Favunt. Variable overhead costs Fixed overhead costs Total overhead costs Predetermined Standard OH rato DL Hours s 17.00 3.00 $ 20.00 $

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