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Can someone please help me find the correct answers to the one's i've missed. Thank you! Lamp Light Limited (LLL) manufactures lampshades. It applies variable
Can someone please help me find the correct answers to the one's i've missed. Thank you!
Lamp Light Limited (LLL) manufactures lampshades. It applies variable overhead on the basis of direct labor hours. Information from LLL's standard cost card follows: During August, LLL had the following actual results: Required: Compute LLL's variable overhead rate variance, variable overhead efficiency variance, and over- or underapplied variable overhead. Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Beverly Company has determined a standard variable overhead rate of $4.20 per direct labor hour and expects to incur 0.50 labor hours per unit produced. Last month, Beverly incurred 1,800 actual direct labor hours in the production of 3,700 units. The company has also determined that its actual variable overhead rate is $2.40 per direct labor hour. Required: Calculate the variable overhead rate and efficiency variances as well as the total amount of over- or underapplied variable overhead. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance)Step by Step Solution
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