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#7 need correct answers thanks Sedona Company set the following standard costs for one unit of its product for 2017 Direct material (20 lbs. $2.10
#7 need correct answers thanks
Sedona Company set the following standard costs for one unit of its product for 2017 Direct material (20 lbs. $2.10 per Ib.) Direct labor (10 hrs. @ $8.88 per hr.) Factory variable overhead (10 hrs. @ $4.00 per hr.) Factory fixed overhead (10 hrs. $1.80 per hr.) Standard cost $ 42.60 88.00 40.00 18.ee $188.00 The $5.80 ($4.00 $180) total overhead rate per direct labor hour is based on an expected operating level equal to 70% of the factory's capacity of 70,000 units per month. The following monthly flexible budget information is also available Operating Levels (s of capacity) Flexible Budget 70 Budgeted output (units) 45,500 49,000 52,500 Budgeted labor (Standard hours) 455,000 490,000 525,000 Budgeted overhead (dollars) Variable overhead $1,820,000 $1,960,000 $2,100,000 Fixed overhead 382,000 882,000 882, 000 Total overhead $2,702,800 $2,842,000 $2,982,000 75% During the current month, the company operated at 65% of capacity, employees worked 435,000 hours, and the following actual overhead costs were incurred. Variable overhead costs Fixed overhead costs Total overhead costs $1,765,000 943,000 $2,700,000 During the current month, the company operated at 65% of capacity, employees worked 435,000 hours, and the following actual overhead costs were incurred, Variable overhead costs Fixed overhead costs Total overhead costs $1,765,600 943,000 $2,708,800 Exercise 23-18A Computation and interpretation of overhead spending, efficiency, and volume variances LO P4 AH Actual Hours SH - Standard Hours AVR - Actual Variable Rate SVR Standard Variable Rate 1. Compute the variable overhead spending and efficiency variances Actual Variable OH Cont Flexible Budget Standard Cont (VOH applied) HALUTUIS Required information SVR - 1. Compute the variable overhead spending and efficiency variances. Actual Variable OH Cost Flexible Budget Standard Cost (VOH applied) 2. Compute the fixed overhead spending on yolumn 2. Compute the fixed overhead spending and volume variances and classify each as favorable or unfavorable. Actual Fixed OH cost Fixed OH (Fixed Budgeted) Standard Cost (FOH applied) 3. Compute the controllable variance. Controllable Variance Controllable variance Step by Step Solution
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