Berk Incorporated makes a single product--a critical part used in commercial airline seats.The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period.Data concerning the most recent year appear below:
Required:
a.Compute the variable component of the company's predetermined overhead rate.
b.Compute the fixed component of the company's predetermined overhead rate.
c.Determine the variable overhead rate variance for the year.
d.Determine the variable overhead efficiency variance for the year.
e.Determine the fixed overhead budget variance for the year.
f.Determine the fixed overhead volume variance for the year.
Definitions:
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