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Compute the overhead volume variances Trini Company set the following standard costs per unit for its single product Overhead is applied using direct labor hours.
Compute the overhead volume variances
Trini Company set the following standard costs per unit for its single product Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80% of the company's capacity of 52,000 units per quarter. The following additional information is available. During the current quarter, the company operated at 90% of capacity and produced 46,800 units; actual direct labor totaled 370,400 hours. Units produced were assigned the following standard costs. \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Volume variance } \\ \hline Budgeted total overhead & & \\ \hline Standard overhead applied & & Favorable \\ \hline Volume variance & & \\ \hline \hline \end{tabular}Step by Step Solution
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