FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Calculating the Total Overhead Variance
Standish Company manufactures consumer products and provided the following information for the month of February:
Units produced
Standard direct labor hours per unit
Standard variable overhead rate (per direct labor hour)
Actual variable overhead costs
Actual hours worked
Required:
1. Calculate the total variable overhead variance.
1,690 X Favorable
✓
131,900
0.2
$3.40
$88,750
26,600
2. What if actual production had been 129,100 units? How would that affect the total variable overhead variance? Indicate what the new variance would be below.
Unfavorable
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Transcribed Image Text:Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided the following information for the month of February: Units produced Standard direct labor hours per unit Standard variable overhead rate (per direct labor hour) Actual variable overhead costs Actual hours worked Required: 1. Calculate the total variable overhead variance. 1,690 X Favorable ✓ 131,900 0.2 $3.40 $88,750 26,600 2. What if actual production had been 129,100 units? How would that affect the total variable overhead variance? Indicate what the new variance would be below. Unfavorable
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