In October, Martinez Inc. reports 42,900 actual direct labor hours and incurs $203,000 of manufacturing overhead costs.
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Question:
In October, Martinez Inc. reports 42,900 actual direct labor hours and incurs $203,000 of manufacturing overhead costs. Standard hours allowed for the month’s production is 42,600 hours. Martinez’s predetermined overhead rate is $5.00 per direct labor hour.
Compute the total manufacturing overhead variance.
Identify whether each variance is favorable or unfavorable.
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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