Different management levels in Bates, Inc , require varying degrees of managerial accounting information Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month The information for the September overhead expenditures is as follows Budgeted output units 3,200 units Budgeted fixed manufacturing overhead$20,000 Budgeted variable manufacturing overhead $5 per direct labor hour Budgeted direct manufacturing labor hours 2 hours per unit Fixed manufacturing costs incurred $26,000 Direct manufacturing labor hours used 7,200 Variable manufacturing costs incurred $35,600 Actual units manufactured 3,400 Using a 3 variance analysis for the plant manager, compute the Spending variance $2,000 unfavorable 5,600 unfavorable $1,250 favorable $7,600 unfavorable

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Different management levels in Bates, Inc , require varying degrees of managerial accounting information  Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month  The information for the September overhead expenditures is as follows  Budgeted output units 3,200 units Budgeted fixed manufacturing overhead$20,000 Budgeted variable manufacturing overhead $5 per direct labor hour Budgeted direct manufacturing labor hours 2 hours per unit Fixed manufacturing costs incurred $26,000 Direct manufacturing labor hours used 7,200 Variable manufacturing costs incurred $35,600 Actual units manufactured 3,400 Using a 3 variance analysis for the plant manager, compute the Spending variance  $2,000 unfavorable 5,600 unfavorable $1,250 favorable $7,600 unfavorable

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Different management levels in Bates, Inc., require varying degrees of managerial accounting information. Because of the need

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Auditing and Assurance Services An Applied Approach

		$2,000 unfavorable
		5,600 unfavorable
		$1,250 favorable
		$7,600 unfavorable

Different management levels in Bates, Inc., require varying degrees of managerial accounting information. Because of the need

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Auditing and Assurance Services An Applied Approach

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