Problem: Silverstone's production budget for March called for making 39,700 units of single product.
The firm's production standards allow one-quarter of a machine hour per unit produced.
The fixed overhead budget for March was $35,333. Silverstone uses an absorption costing system.
Units produced 36,673
Fixed overhead costs incurred $37,400
Q1. Calculate the predetermined fixed overhead application rate that would be used in March.
(round your answer to 2 decimal places.)
Q2. Calculate the number of machine hours that would be allowed for actual March production.
(Round your answers to a whole number.)
Q3. Calculate the fixed overhead applied to work in process during March.
(Round your intermediate calculations to 2 decimal places and round your answers to a whole number.)
Q4. Calculate the over- or under-applied fixed overhead for March.
(Round your intermediate calculations to 2 decimal places and round your answers to a whole number.)
Q5. Calculate the fixed overhead budget and volume variances for March.
(round your intermediate calculations to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)