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I have the answers , but I would like to understand on a complete template , thank you QUESTION V. 17.5 POINTS Asparagus Ltd., a
I have the answers , but I would like to understand on a complete template , thank you
QUESTION V. 17.5 POINTS Asparagus Ltd., a successful Canadian company, is able to buy a new type of biodegradable plastic at a fixed price of $150 per roll. The plastic is then cut and sealed to make dry cleaning bags. Fixed factory overhead is estimated to be $506,000 per year. During this past year, 19,800 cartons of dry cleaning bags were actually produced; this represents 90% of the denominator activity level. The following information is also available: Rolls of plastic used 60.000 Variable overhead incurred $200,000 Rolls of plastic price variance | $0 Direct labour efficiency variance $9,630 U Fixed overhead spending (budget) $5,000 F variance Standard costs per carton of dry cleaning bags: Labour costs @ $18 per hour $27 Rolls of plastic 3 rolls Total overhead $32 Instructions: Compute the following: 1. Total Standard direct labour hours allowed for cartons produced. 2. Total actual number of direct labour hours incurred. 3. Total costs of fixed overhead applied. 4. Total fixed overhead volume variance. 5. Total overhead efficiency variance. 6. Total variable overhead spending varianceStep by Step Solution
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