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Flapjack Corporation had 7,809 actual direct labor hours at an actual rate of $12.10 per hour. Original production had been budgeted for 1,100 units, but
Flapjack Corporation had 7,809 actual direct labor hours at an actual rate of $12.10 per hour. Original production had been budgeted for 1,100 units, but only 970 units were actually produced. Labor standards were 7.5 hours per completed unit at a standard rate of $13.06 per hour. The direct labor rate variance is Oa. $7,496.64 unfavorable Ob. $7,496.64 favorable Oc. $6,353.30 unfavorable Od. $6,353.30 favorable The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours per unit at $0.74 per hour Variable overhead Actual Costs Total variable cost, $17,800 3 hours per unit at $1.93 per hour Total fixed cost, $7,900 The variable factory overhead controllable variance is Oa. $0 Ob. $2,746 favorable Oc. $2,746 unfavorable Od. $2,197 favorable
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