Review the data from Great Fender given in E23-19. Consider the following additional information: Great Fender allocates

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Review the data from Great Fender given in E23-19. Consider the following additional information:

Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of un

Great Fender allocates manufacturing overhead to production based on standard direct labor hours. Great Fender reported the following actual results for 2012: actual variable overhead, $4,950; actual fixed overhead, $23,000.
Requirements
1. Compute the variable and fixed overhead variances. Use Exhibits 23-11 and 23-12 as guides.
2. Explain why the variances are favorable orunfavorable.

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Financial and Managerial Accounting

ISBN: 978-0132497978

3rd Edition

Authors: Horngren, Harrison, Oliver

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