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The following information is for the third quarter of this year:
Planned ActualProduction 92,000 units 87,000 unitsDirect labor hours 506,800 DL hrs 380,000 DL hrsFixed manufacturing overhead $205,000 $182,400Variable manufacturing overhead $910,000 $841,500Standard direct labor hour per unit 5.5
Required: Calculate the following three overhead variances:a. Overhead volume variance.b. Overhead efficiency variance.c. Overhead spending variance.
Rayya Co. purchases and installs a machine on January 1, 2013, at a total cost of $105,000. Straight-line depreciation is taken each year for four years assuming a seven-year life
Bakers Bagels LLC produces and sells 20 types of bagels by the dozen. Bagels are priced at $6.00 per dozen (or $0.50 each) and cost $.020 per unit to produce. The company is consid
STANDARD COSTING STANDARD COSTING is a method, which uses standards for costs and revenues for the idea of control by variance analysis. It can be used either through operation
what are importance of cost classification
Limitations of CVP Analysis The make use of the basic CVP model is just only relevant to planning and decision-making in an activity range whether the basic cost and revenue b
Relevant Costs and Decision-Making The relevance of costs will depend upon the purpose for that they are being utilized. Relevance is related to future decisions. The relevanc
Estimate Fixed Overhead Variances Referring to data, we can estimate the fixed overhead variances as given below: Budget for December 2003;
Methods of Allocating Service Costs Direct Method The service costs are merely allocated to the production department according to the usage of the services given. St
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