Using the data in BE11-6 and BE11-10, compute the overhead volume variance. Normal capacity was 25,000 direct
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Using the data in BE11-6 and BE11-10, compute the overhead volume variance. Normal capacity was 25,000 direct labor hours.
Data from BE11-6
In October, Roby Company reports 21,000 actual direct labor hours, and it incurs $118,000 of manufacturing overhead costs. Standard hours allowed for the work done is 20,400 hours. The predetermined overhead rate is $6 per direct labor hour.
Data from BE11-10
Some overhead data for Roby Company are given in BE11-6. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $4 variable per direct labor hour and $50,000 fixed.
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Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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