information about the use of fixed overhead at EZ Toys’ Trucks Division follows:
|
Annual budget data Fixed overhead |
= $115,200 |
|
Direct labor hours |
= 57,600 |
|
Standard fixed overhead rate |
= $2 per hour |
|
Standard costs |
|
|
0.4 hour per truck @ $2 per hour |
= $0.8 per truck |
|
Trucks produced in October |
= 10,000 |
|
Actual variable overhead cost |
= $9,000 |
Required:
Prepare Truck Division’s fixed overhead variances for October.