Allegiant Company Uses Standard Costing Required:
A

question 101

Essay

Allegiant Company uses standard costing. Overhead is applied to products on the basis of standard direct labour hours for actual production. The company provided the following data: $$\begin{array} { l r } \text { Standard direct labour hours allowed for actual output } & 100,000 \\\text { Actual direct labour hours } & 125,000 \\\text { Direct labour hours budgeted in the master budget } & 140,000 \\\text { Budgeted total fixed overhead cost } & \$ 280,000 \\\text { Actual fixed overhead cost } & \$ 300,000\end{array}$$ Required:
A. Calculate the fixed overhead rate.
B. Calculate the total fixed overhead applied to production.
C. Calculate the fixed overhead spending variance.
D. Calculate the fixed overhead volume variance.
E. Calculate the total fixed overhead variance.

---

Definitions:

Exploring

The act of traveling through unfamiliar areas in order to learn about them or the act of examining or discussing a subject in detail to discover new information.

Standardized Testing

Tests administered and scored consistently across different individuals to measure their abilities or knowledge in certain areas.

Overall Performance

Overall performance captures the total effectiveness, output, or achievement of an individual or organization, considering all efforts and outcomes.

Poorly Performing

Describing something that fails to achieve expected standards or results in a given task or area.