Jackson Companys annual overhead rate was based on estimates of $200,000 for overhead costs and 20,000 direct
Question:
Jackson Company’s annual overhead rate was based on estimates of $200,000 for overhead costs and 20,000 direct labor hours. Jackson’s standards allow 2 hours of direct labor per unit produced. Production in May was 900 units, and actual overhead incurred in May was $18,800.The overhead budgeted for 1,800 standard direct labor hours is $17,600 ($5,000 fixed and $12,600 variable).
Instructions
(a) Compute the total, controllable, and volume variances for overhead.
(b) What are possible causes of the variances computed in part (a)?
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a 5000 X 1220000 2000012 b The cause of an unfavorable contr...View the full answer
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Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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