Compute the fixed portion of the predetermined

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ABC Manufacturing uses a standard costing system. It applies overhead to products based on machine-hours. Data for the year are as follows:

Total budgeted fixed overhead

$300,000

Actual fixed overhead costs incurred

$275,000

Total budgeted (denominator) machine-hours

50,000

Actual machine-hours

54,000

Standard machine-hours allowed for the actual output

52,000

Required: Compute the fixed portion of the predetermined overhead rate for the year. Compute the fixed overhead budget and volume variances.

 

Reference no: EM13509155

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