The cheque-clearing office of Columbia National Bank is responsible for processing all cheques that come to the

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The cheque-clearing office of Columbia National Bank is responsible for processing all cheques that come to the bank for payment. Managers at the bank believe that variable overhead costs are essentially proportional to the number of labour-hours worked in the office, so labour-hours is used as the activity base for budgeting and for performance reports for variable overhead costs in the department. Data for September, the most recent month, appear below:Budgeted labour-hours Actual labour-hours Standard labour-hours allowed for the actual number of cheques

Required
Prepare a variable overhead performance report for September for the cheque-clearing office that includes both spending and efficiency variances. Use Exhibit 13.7 as a guide.

Exhibit 13.7Budgeted machine-hours Actual machine hours 50,000 42,000 Standard machine-hours allowed 40,000 Overhead

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Management Accounting

ISBN: 9780077185534

6th Edition

Authors: Will Seal, Carsten Rohde, Ray Garrison, Eric Noreen

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