The Predetermined Overhead Rate for Zane Company Is $5 Comprised

question 139

Multiple Choice

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 $150000 was divided by normal capacity of 30000 direct labor hours to arrive at the predetermined overhead rate of $5. Actual overhead for June was $9500 variable and $6050 fixed and standard hours allowed for the product produced in June was 3000 hours. The total overhead variance is

• A) $3050 F.
• B) $550 F.
• C) $550 U.
• D) $3050 U.

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