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Featured Exercise
Franklin Company provides the following information about its manufacturing operations for the month just ended:
Actual machine-hours used
22,000
Budgeted total overhead
$900,000
Actual variable overhead incurred
$352,000
Actual fixed overhead incurred
$575,000
Budgeted production is 200,000 units of output and actual production is 198,000 units of output. One-tenth of a machine-hour is budgeted per unit of output. The budgeted fixed overhead cost rate is $30 per machine-hour. The company uses 4-variance analysis for overhead.
a. Using the columnar format below, compute the variable overhead spending and efficiency variances. Indicate whether each variance is favorable or unfavorable. Use F for favorable variances and U for unfavorable variances.
b. Using the columnar format below, compute the fixed overhead spending and production-volume variances. Indicate whether each variance is favorable or unfavorable. Use F for favorable variances and U for unfavorable variances.
c. Is total overhead underallocated or overallocated? By what amount?
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company operates an off-airport parking facility which allows travelers to park their vehicles and transports them to
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Following are the direct labor hours and the repair costs of Jason Corporation over a seven-week period.Direct Labor Hours
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