(Appendix) Calculating factory overhead: four variances}

Atlanta Gasket Company budgets 8,000 direct labor hours for the year. The total overhead budget is expected to amount to \(\$ 20,000\). The standard cost for a unit of the company's product estimates the variable overhead as follows:

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The actual data for the period follow: Actual completed units Actual direct labor hours Actual variable overhead Actual fixed overhead 2,500 7,640 $16,100 3,920