Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead o

Question

Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLL's standard cost card follows: Standard Quantity Standard Rate Standard Unit Cost Variable manufacturing overhead 0.6 $0.80 $0.48 During August, LLL had the following actual results: Units produced and sold 25,000 Actual variable overhead $ 9,490 Actual direct labor hours 16,000 Lamp Light Limited (LLL) calculates a fixed overhead rate based on budgeted fixed overhead of $36,050 and budgeted production of 20,600 units. Actual results were as follows: Number of units produced and sold 23,600 Actual fixed overhead $33,050 Required: Calculate the fixed overhead rate based on budgeted production for LLL. (Round your answer to 2 decimal places.) Fixed Overhead Rate per unit Calculate the fixed overhead spending variance for LLL.(lndicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Fixed Overhead Spending Variance 111 Calculate the fixed overhead volume variance for LLL. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable. Round Fixed overhead rate to 2 decimal places.) Fixed Overhead Volume Variance Calculate the over- or underapplied fixed overhead for LLL. Overapplied Fixed overhead

Explanation / Answer

1 Fixed Overhead Rate $1.75 per unit 2 Fixed Overhead Spending Variance $3,000 F 3 Fixed Overhead Volume Variance $5,250 F 4 Overapplied Fixed Overead $8,250

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.