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6. A company has the following information for Job Alpha during July: Units produced 1,000 Actual materials used (and purchased) 5,250 lbs. Actual materials cost
6. A company has the following information for Job Alpha during July: Units produced 1,000 Actual materials used (and purchased) 5,250 lbs. Actual materials cost $ 4.80 per lb. Actual labor hours incurred 2,552 Actual labor rate $ 21.25 per hour Work in process, July 1 $ Work in process, July 31 $ The company applies manufacturing overhead to jobs based on direct labor hours. Additional information for the company in July is as follows: Total estimated labor hours 45,232 Standard materials per unit 5.00 lbs. Standard materials cost $ 5.00 per lb. Standard labor hours per unit 2.75 hours Standard labor rate $ 22.00 per hour Standard variable overhead 3.00 per labor hour Standard fixed overhead* $ 5.00 per labor hour *based on 45,232 labor hours Actual total output in units 16,500 Actual total labor hours 43,725 Actual variable overhead $ 2.90 per labor hour Actual total fixed overhead $220,000 i. If the company is using a standard costing system, what is the company's overall fixed overhead volume variance (4 points): j. If the company is using a standard costing system, calculate whether total fixed overhead is over or under-applied and by how much (4 points): k. Extra Credit: If the company is using a normal costing system, calculate whether total fixed overhead is over or under-applied and by how much (4 points)
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