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20 Gerhan Company's flexible budget for the units manufactured in May shows $15,520 of total factory overhead; this output level represents 70% of available capacity.
20 Gerhan Company's flexible budget for the units manufactured in May shows $15,520 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 5,850 DLHs, which represents 90% of available capacity. The company worked 5,000 DLHs and incurred $16,600 of total factory overhead cost during May, including $5,800 for fixed factory overhead. Under a three-variance breakdown (decomposition) of the total overhead variance, what is the total factory overhead spending variance (to the nearest whole dollar) for May? (Round your intermediate calculation to 2 decimal places.) 02:01:28 Multiple Choice N/A-this variance does not exist in a three-variance analysis of the total overhead variance. $296 favorable. O $376 unfavorable. O O $476 unfavorable. $1,156 unfavorable. O
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