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    Silverstone: Fixed Overhead Standard Cost Variances

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    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

    a. Calculate the predetermined fixed overhead application rate that would be used in March.
    (round your answer to 2 decimal places.)

    b. Calculate the number of machine hours that would be allowed for actual March production.
    (Round your answers to a whole number.)

    c. 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.)

    d. 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.)

    e. 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.)

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