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Attempts: 1 of 3 used (b) Compute the total, controllable, and volume overhead variances. Variable manufacturing overhead costs $20,000 Fixed manufacturing overhead costs $8,000 Normal

Attempts: 1 of 3 used

(b)

Compute the total, controllable, and volume overhead variances.

Variable manufacturing overhead costs $20,000
Fixed manufacturing overhead costs $8,000
Normal production level in labor hours 8,000
Normal production level in units 4,000
Standard labor hours per unit 2

During the year, 3,800 units were produced, 15,800 hours were worked, and the actual manufacturing overhead was $28,400. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours.

(a)

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Compute the total, fixed, and variable predetermined manufacturing overhead rates. (Round answers to 2 decimal places, e.g. 1.25.)

Item

Rate

Variable overhead $
Fixed overhead
Total overhead $

Attempts: 1 of 3 used

(b)

Compute the total, controllable, and volume overhead variances.

Total overhead variance $ UnfavorableFavorableNeither favorable nor unfavorable
Overhead controllable variance $ Neither favorable nor unfavorableUnfavorableFavorable
Overhead volume variance $ UnfavorableFavorableNeither favorable nor unfavorable

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