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Allegiant Company Uses Standard Costing A \quad Calculate the Fixed Overhead Rate

Question 124

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Allegiant Company uses standard costing.Overhead is applied to products on the basis of standard direct labour hours for actual production.Data for Allegiant follows:  Standard direct labour hours allowed for actual output 100,000 Actual direct labour hours 125,000 Direct labour hours budgeted in the master budget 140,000 Budgeted total fixed overhead cost $280,000 Actual fixed overhead cost $300,000\begin{array}{ll}\text { Standard direct labour hours allowed for actual output } & 100,000 \\\text { Actual direct labour hours } & 125,000 \\\text { Direct labour hours budgeted in the master budget } & 140,000 \\\text { Budgeted total fixed overhead cost } & \$ 280,000 \\\text { Actual fixed overhead cost } & \$ 300,000\end{array} A. \quad Calculate the fixed overhead rate.
B. \quad Calculate the total fixed overhead applied to production.
C. \quad Calculate the fixed overhead spending variance.
D. \quad Calculate the fixed overhead volume variance.
E. \quad Calculate the total fixed overhead variance.

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