Response to the following problem:
Selected information relating to Yost Company's operations for the most recent year is given below:
Activity:
Denominator activity (machine-hours) ....................................... 45,000
Standard hours allowed per unit ............................................ 3
Number of units produced ............................................................. 14,000
Costs:
Actual fixed overhead costs incurred ................................... $267,000
Fixed overhead budget variance .................................................. $3,000 F
The company applies overhead cost to products on the basis of standard machine-hours.
Required:
1. What were the standard machine-hours allowed for the actual production?
2. What was the fixed portion of the predetermined overhead rate?
3. What was the volume variance?