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World Company expects to operate at 80% of its productive capacity of 50,000 units per month. At this planned level, the company expects to use 25,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours. At the 80% capacity level, the total budgeted cost includes $ 50,000 fixed overhead cost and $ 275,000 variable overhead cost. In the current month, the company incurred $ 305,000 actual overhead and 22,000 actual labor hours while producing 35,000 units.
(1) Compute the overhead application rate for total overhead.
(2) Compute the total overhead variance.
Could someone give me their opinions on how to boost the demand for more management accounting career options on college grounds?
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