Office Plus determines overhead rates based on machine hours. Budgeted overhead is $240,000, and budgeted machine hours are 20,000. If actual overhead is $250,000 and actual machine hours are 19,000, The overhead variance is favorable or unfavorable?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 9DQ: At the end of the period, the factory overhead account has a credit balance of 10,000. (a) Is the...
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Office Plus determines overhead rates based on machine hours.
Budgeted overhead is $240,000, and budgeted machine hours
are 20,000. If actual overhead is $250,000 and actual machine
hours are 19,000, The overhead variance is favorable or
unfavorable?
Transcribed Image Text:Office Plus determines overhead rates based on machine hours. Budgeted overhead is $240,000, and budgeted machine hours are 20,000. If actual overhead is $250,000 and actual machine hours are 19,000, The overhead variance is favorable or unfavorable?
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