Navajo Company reported a $50 unfavorable price variance for variable overhead and a $500 unfavorable price variance
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Navajo Company reported a $50 unfavorable price variance for variable overhead and a $500 unfavorable price variance for fixed overhead. The flexible budget had
$32,1(X) variable overhead based on 10,700 direct labor-hours; only 10,600 hours were worked. Total actual overhead was $54,350. Estimated hours for computing the fixed overhead application rate were 11,000 hours.
a. Prepare a variable overhead analysis like the one in Illustration 19-5
.
h. Prepare a fixed overhead analysis like the one in Illustration 19-12
.
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