Allegiant Company Uses Standard CostingA$\quad$ Calculate the Fixed Overhead Rate$\quad$

Question

Examlex · Accepted Answer

The Answer is A.

\quad

Fixed overhead rate

= \$ 280,000 / 140,000 = \$ 2.00

B.

\quad

Fixed overhead applied to production

= \$ 2.00 imes 100,000 = \$ 200,000

C.

\quad

Fixed overhead spending variance

= \$ 300,000 - \$ 280,000 = \$ 20,000 \mathrm { U }

D.

\quad

Fixed overhead volume variance

= \$ 280,000 - \$ 200,000 = \$ 80,000 \mathrm {~F}

E.

\quad

Total fixed overhead variance

= \$ 20,000 \mathrm { U } + \$ 80,000 \mathrm {~F} = \$ 60,000 \mathrm { U }

Allegiant Company Uses Standard Costing A $\quad$ Calculate the Fixed Overhead Rate