Question
A company rents a building with a total of 77,500 square feet, which are evenly divided between two floors. The total monthly rent for the
A company rents a building with a total of 77,500 square feet, which are evenly divided between two floors. The total monthly rent for the building is $46,500. The company allocates $31,000 of total rent expense to the first floor and $15,500 of total rent expense to the second floor. How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the second floor?
Levelor Company's flexible budget shows $10,630 of overhead at 75% of capacity, which was the operating level achieved during May. However, the company applied overhead to production during May at a rate of $2.10 per direct labor hour based on a budgeted operating level of 6,040 direct labor hours (90% of capacity). If overhead actually incurred was $11,095 during May, the controllable variance for the month was:
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