Business: The predetermined overhead rate for zane production company is $10, comprised of avariable overhead rate of $6 and a fixed rate of $4. the amount of budgeted overheadcosts at normal capacity of $300,000 was divided by normal capacity of 30,000 directlabor hours, to arrive at the predetermined overhead rate of $10. actual overhead forjune was $19,000 variable and $12,100 fixed, and standard hours allowed for theproduct produced in june was 3,000 hours. the total overhead variance is

The predetermined overhead rate for zane production

soleydyperez

04.01.2022

The total variance will befor 3,100 unfavorable

Explanation:

Variable overhead variance:

3,000 hours x 6 variable overhead = 18,000 variable - 19,000 = 1,000 Unfavorable

Fixed overhead:

30,000 x 4 = 120,000 fixed per year

120,000 / 12 monht a year = 10,000 fixed overhead per month

actual fixed 12,100

variance 2,100 unfavorable

total variance 3,100 U

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