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complete all requirements Requirements 1. Calculate the fixed overhead spending variance and indicate whether it is favorable (F) or unfavorable (U). 2. If Waggle uses
complete all requirements
Requirements 1. Calculate the fixed overhead spending variance and indicate whether it is favorable (F) or unfavorable (U). 2. If Waggle uses direct labor-hours available at capacity to calculate the budgeted fixed overhead rate, what is the production-volume variance? Indicate whether it is favorable (F) or unfavorable (U). 3. An unfavorable production-volume variance could be interpreted as the economic cost of unused capacity. Why would Waggle be willing to incur this cost? 4. Divot Down's budgeted variable cost per unit is $24, and it expects to sell its shirts for $52 apiece. Compute the sales-volume variance and reconcile it with the production-volume variance calculated in requirement 2 . What does each concept measure? Waggle Company makes customired goil shits for sale to golf courses. Each shirt requres 1.5 nours to peoduce because of the customited logo for each goit course. Waggi uses direct labor-hours to allocate the owerheed cost to production. Fxed overhead costs, including rent, depreciation, supervisory salaries, and other production expenses, sre budgeled at \$t5, 600 per month. The facilify currently used is large enough to produce 1.300 shirts per moeth. During Marth, Waggle produced 7 to shirts and actuar foed costs wore s12, a00. the budgeles tixed ovethead male, what is the producton-volume variance? indicate whether it is faverable (F) or untevorable (U). Begin by delermining the formule then computing the fixed overhead rate per direct labor hour. (Round the fxod overhead rate to the nearest cent) =Fuedovtheadrate=1 Step by Step Solution
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