Manuel Company predicts it will operate at 8 0 % of its productive capacity. Its overhead allocation
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Question:
Manuel Company predicts it will operate at of its productive capacity. Its overhead allocation base is DLH and its standard amount per allocation base is DLH per unit. The company reports the following for this
period.
Flexible Budget at Capacity Actual Results
Production in units
Overhead:
Variable overhead $
Fixed overhead
Total overhead $ $
Compute the overhead volume variance. Indicate variance as favorable or unfavorable.
Compute the overhead controllable variance. Indicate variance as favorable or unfavorable.
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