Question: IV. Overhead Variances: ABC Co uses both variable and fixed overhead cost pools. Variable overhead is applied based on direct labor hours, while fixed overhead

IV. Overhead Variances: ABC Co uses both variable and fixed overhead cost pools. Variable overhead is applied based on direct labor hours, while fixed overhead is applied on a per-unit basis.

For 2024, the following budget information is available:

Forecasted production: 30,000 units

Direct labor standard: 1.5 hours per unit

Budgeted fixed overhead: $210,000

Budgeted variable overhead: $90,000

Actual results for 2024 were:

Actual production: 31,000

Actual direct labor hours: 47,000

Actual variable overhead: $92,000

Actual fixed overhead: $206,000

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