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Is that the correct answer? I want to double-check. Doily Company manufactures pillows. For 2020, the company expects fixed overhead costs of $420,000. Doily uses
Is that the correct answer? I want to double-check.
Doily Company manufactures pillows. For 2020, the company expects fixed overhead costs of $420,000. Doily uses machine-hours to allocate fixed overhead costs and anticipates 21,000 hours during the year to manufacture 28,000 pillows. During 2020, Doily manufactured 25,800 pillows and spent $418,000 on fixed overhead costs. Calculate the following: a. The fixed overhead rate for 2020 b. The fixed overhead spending variance for 2020 c. The production-volume variance for 2020 a. Calculate the fixed overhead rate for 2020. Fixed overhead rate per hour for 2020 20 b. Calculate the fixed overhead spending variance for 2020. (Complete all input fields.) Fixed overhead spending variance Favorable or Amount Unfavorable? 31,000 Unfavorable c. Calculate the production-volume variance for 2020. (Complete all input fields.) Production-volume variance Favorable or Amount Unfavorable? -33,000 FavorableStep by Step Solution
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