A company makes two types of pasta sauce, Primavera and Bolognese. Overhead is based on kilograms of
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A company makes two types of pasta sauce, Primavera and Bolognese. Overhead is based on kilograms of tomatoes in the sauce. The standards for the two types of sauce are as shown on the next page.
The budgeted overhead for the period is \($700,000.\) During the period, 450,000 units of Primavera are made using 525,000 kilograms of tomatoes. In addition, 650,000 units of Bolognese are made using 1 million kilograms of tomatoes. Actual overhead costs are
\($800,000.\) The application rate is \($700,000/1,400,000\) kilograms, or \($0.50\) per kilogram.
What is the total overhead variance?
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Related Book For
Management Accounting In A Dynamic Environment
ISBN: 9780415839020
1st Edition
Authors: Cheryl S McWatters, Jerold L Zimmerman
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