Question
I need help with some of the steps for this problem, Please HELP! Problem 16-60 Overhead Cost and Variance Relationships (LO 16- 5, 6) McDormand,
I need help with some of the steps for this problem, Please HELP!
Problem 16-60 Overhead Cost and Variance Relationships (LO 16- 5, 6)
McDormand, Inc., reported a $3,300 unfavorable price variance for variable overhead and a $33,000 unfavorable price variance for fixed overhead. The flexible budget had $1,081,500 variable overhead based on 36,050 direct labor-hours; only 34,090 hours were worked. Total actual overhead was $1,811,000. The number of estimated hours for computing the fixed overhead application rate totaled 37,600 hours.
Required: a. Compute the following variable overhead variances (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
b. Compute the following fixed overhead variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)
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