Argon Company makes clocks.The fixed overhead costs for 2015 total $880,000.The company uses direct labor-hours for fixed overhead allocation and anticipates 220,000 hours during the year for 330,000 units.An equal number of units are budgeted for each month.
During June,32,000 clocks were produced and $72,000 was spent on fixed overhead.
Required:
a.Determine the fixed overhead rate for 2015 based on units of input.
b.Determine the fixed overhead static-budget variance for June.
c.Determine the production-volume overhead variance for June.

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The Answer of Argon Company makes clocks.The fixed overhead costs for 2015 total $880,000.The company uses direct labor-hours for fixed overhead allocation and anticipates 220,000 hours during the year for 330,000 units.An equal number of units are budgeted for each month.
During June,32,000 clocks were produced and $72,000 was spent on fixed overhead.
Required:
a.Determine the fixed overhead rate for 2015 based on units of input.
b.Determine the fixed overhead static-budget variance for June.
c.Determine the production-volume overhead variance for June.

Argon Company Makes Clocks