Audrina'sFleet Feet, Inc., produces dance shoes for stores all over the world. While the pairs of shoes are boxed individually, they are crated and shipped in batches. The shipping department records both variable direct batch-level costs and fixed batch-level overhead costs. The following information pertains to shipping costs for2014.1.2.What is the flexible budget number of crates for2014?3.What is the actual number of crates shipped in2014?4.Assuming fixed overhead is allocated using crate-packing hours, what is the predetermined fixed overhead allocation rate?5.For variable direct batch-level costs, compute the price and efficiency variances.6.Static-Budget Amounts Actual ResultsPairs of shoes shipped 240,000 180,000 Average number of pairs of shoes per crate 12 10 Packing hours per crate 1.2 hours 1.1 hours Variable direct cost per hour $20 $21 Fixed overhead cost $60,000 $62,500 For fixed overhead costs, compute the spending and theproduction-volume variances.

Explanation:

1-

Static budget number of crates = Budgeted pairs shipped / Budgeted pairs per crate  

Static budget number of crates = 240,000 Pairs / 12 Pairs    

Static budget number of crates = 20,000 Crates

2-

Flexible budget number of crates = Actual pairs shipped / Budgeted pairs per crate  

Flexible budget number of crates = 180,000 Pairs / 12 Pairs    

Flexible budget number of crates = 15,000 Crates

3-

Actual number of crates shipped = Actual pairs shipped / Actual pairs per box  

Actual number of crates shipped = 180,000 Pairs / 10 Pairs    

Actual number of crates shipped = 18,000 Crates

4-

Static budget number of hours = Static budget number of crates × budgeted hours per box  

Static budget number of hours = 20,000 Crates X 1.10 hours    

Static budget number of hours = 22,000 hours      

Fixed overhead rate = Static budget fixed overhead / static budget number of hours  

Fixed overhead rate = $60,000 / 22,000 hrs      

Fixed overhead rate = $2.73 per hour (Approx.)

5 - 6

For Explanation of Question 5 and 6 find the attachment

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explanation:

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