(Calculation of four variances) Deidras Hattery utilizes a standard cost system. Data for October are presented below:...
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(Calculation of four variances) Deidra’s Hattery utilizes a standard cost system. Data for October are presented below:
The fixed overhead charge is based on an expected monthly capacity of 5,000 units, but due to a fire on the production floor, the company only produced 3,500 units. Actual variable overhead was $8,000 and actual fixed overhead was $19,000. The company recorded 4,000 direct labor hours for the month.
a. Compute and compare the actual overhead cost per unit with the expected overhead cost per unit.
b. Calculate overhead variances using the four-variance method.LO1
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Related Book For 
Cost Accounting Traditions And Innovations
ISBN: 9780538880473
3rd Edition
Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney
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