Selected information relating to the fixed overhead costs of Westwood Company for the most recent year is given below:
Activity:
Number of units produced . . . . . . . . . . . . . . . . . . . 9,500
Standard machine hours allowed per unit . . . . . . . 2
Denominator activity (machine hours) . . . . . . . . . 20,000
Costs:
Actual fixed overhead costs incurred . . . . . . . . . . . $79,000
Budget variance . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000 F
Overhead cost is applied to products on the basis of standard machine hours.
Required:
1. What was the fixed portion of the predetermined overhead rate?
2. What were the standard machine hours allowed for the period’s production?
3. What was the volume variance?