Business, 27.05.2020 20:08 akornegay2

The predetermined overhead rate for Bonita Industries is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $15550 variable and $10050 fixed, and standard hours allowed for the product produced in June was 5000 hours.

The total overhead variance is

a. $5050 U.
b. $600 F.
c. $5050 F.
d. $600 U.

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The predetermined overhead rate for Bonita Industries is $5, comprised of a variable overhead rate o...

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