Timely Products Company Makes Watches

question 130

Essay

Timely Products Company makes watches. The fixed overhead costs for 2017 total $648,000. The company uses direct labor-hours for fixed overhead allocation and anticipates 21,600 hours during the year for 540,000 units. An equal number of units are budgeted for each month.
During October, 48,000 watches were produced and $52,000 was spent on fixed overhead.
Required:
a.Determine the fixed overhead rate for 2017 based on the units of input.
b.Determine the fixed overhead static-budget variance for October.
c.Determine the production-volume overhead variance for October.

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Definitions:

Fertility Treatments

Medical interventions aimed at helping individuals or couples to conceive and support a successful pregnancy.

Collective Bargaining

Negotiation of employment conditions between employers and a group of employees who are usually represented by a union.

Conditions of Employment

The terms, policies, and requirements that define the working relationship between an employer and employee.

National Labor Relations Board

A federal agency in the United States responsible for enforcing US labor law in relation to collective bargaining and unfair labor practices.