The predetermined overhead rate for Zane Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of
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The predetermined overhead rate for Zane Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of
The predetermined overhead rate for Zane Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150,000 was divided by normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $8,900 variable and $5,400 fixed, and 1,500 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is $700 F. O $1,800 U. O $700 U. O $1,800 F.
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