Question: Shaw Company produced 810 units. Its overhead allocation base is DL.H and its standard amount per allocation base is 8 DLH per unit. Its standard

 Shaw Company produced 810 units. Its overhead allocation base is DL.H
and its standard amount per allocation base is 8 DLH per unit.
Its standard overhead rate is $10 per DLH. The flexible overhead budget

Shaw Company produced 810 units. Its overhead allocation base is DL.H and its standard amount per allocation base is 8 DLH per unit. Its standard overhead rate is $10 per DLH. The flexible overhead budget at an activity level of 810 units shows $32,500 in variable overhead costs and $36,500 in fixed overhead costs. Compute the volume varlance. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Sedona Company set the following standard costs for one unit of its product for this year. The $3.30($2.20+$1.10) total overhead rate per direct labor hour (DLH) is based on a predicted activity leve of 33,800 units, which is 65% of the factory's capacity of 52,000 units per month. The following monthly flexible budget information is available. During the current month, the company operated at 60% of capacity, direct labor of 591,000 hours were used, and the following actual overhead costs were incurred. 1. Compute the total variable overhead variance and identify it as favorable or unfavorable. (Inclicate the effect of the vorionce by selecting favorable, unfavorable, or no variance.) 2. Compute the total fixed overhead varlance and identify it as favorable or unfavorable. (Indicote the effect of the vorionce by selecting favorable, unfovorable, or no variance.)

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