Silverstone's production budget for March called for making 38,400 units of a single product. The firm's production standards allow one-quarter of a machine hour per unit produced. The fixed overhead budget for March was $33,792. Silverstone uses an absorption costing system. Actual activity and costs for March were:
- Units produced 35,522
- Fixed overhead costs incurred $ 37,600
- Calculate the predetermined fixed overhead application rate that would be used in March.
- Calculate the number of machine hours that would be allowed for actual March production.
- Calculate the fixed overhead applied to work in process during March.
- Calculate the over- or underapplied fixed overhead for March.
- Calculate the fixed overhead budget and volume variances for March