Question: Why is an unfavorable overhead volume variance usually not considered
Why is an unfavorable overhead volume variance usually not considered in evaluating the performance of the production department manager?
Answer to relevant QuestionsHow can operating at 100 percent of capacity create unfavorable variances?A popular product of Loring Glassworks is a hand-decorated vase. The company’s standard cost system calls for 0.75 hours of direct labor per vase, at a standard wage rate of $8.25. During September, Loring produced 4,000 ...Gumchara Corporation reported the following information with respect to the materials required to manufacture amalgam florostats during the current month:Standard price per gram of materials . . . . . . . . . . . . . . . . . ...McGill’s overhead spending variance is unfavorable by $600. The company’s accountant credited the Cost of Goods Sold account for $4,200 to close out any over- or underapplied overhead at the end of the current ...The accountants for Polyglaze, Inc., have developed the following information regarding the standard cost and the actual cost of a product manufactured in June:Instructionsa. Compute the materials price variance and the ...
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