Lamp Light Limited (LLL) manufactures lampshades. It applies LLL's standard cost card follows:
Variable manufacturing
Standard
Standard
Standard
Quantity
Rate
Unit Cost
Overhead
0.6
$4.00
$2.40
During August, LLL had the following actual results:
Units produced and sold
24,000
Actual variable overhead
$ 56,000
Actual direct labor hours
9,000
Lamp Light Limited (LLL) calculates a fixed overhead rate based on budgeted fixed overhead of $33,000 and budgeted production of 22,000 units. Actual results were as follows:
Number of units produced and
sold
24,000
Actual fixed overhead
$ 33,000
Required:
1. Calculate the fixed overhead rate based on budgeted production for LLL.
2. Calculate the fixed overhead spending variance for LLL.
3. Calculate the fixed overhead volume variance for LLL.
4. Calculate the over- or underapplied fixed overhead for LLL.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 and 3
Req 4
Calculate the fixed overhead rate based on budgeted production for LLL. (Round your answer to 2 decimal places.)
Fixed Overhead Rate
per unit
