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In February, Sputnik Company reports 28,000 actual direct labor hours, and it incurs $168,000 of manufacturing overhead costs. Standard hours allowed for the work performed
In February, Sputnik Company reports 28,000 actual direct labor hours, and it incurs $168,000 of manufacturing overhead costs. Standard hours allowed for the work performed is 29,000 hours. The predetermined overhead rate is $6 per direct labor hour. The flexible manufacturing overhead budget shows that budgeted costs are $4 variable per direct labor hour and $60,000 fixed. Normal capacity was 30,000 direct labor hours. Compute total overhead variances.
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