Shaw Inc. began this period with a budget for 1,000 units of predicted production. The budgeted overhead
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Shaw Inc. began this period with a budget for 1,000 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $92,000, and actual units produced were 900. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH.
a. Compute controllable variance.
b. Compute volume variance.
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