Question
In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Standard hours allowed for the work done
In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Standard hours allowed for the work done is 40,000 hours. Glaziers predetermined overhead rate is $5.00 per direct labor hour. In addition, the flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $60,000 fixed. Compute the manufacturing overhead volume variance. Normal capacity was 50,000 direct labor hours. Identify whether the variance is favorable or unfavorable?
Total manufacturing overhead volume variance |
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