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Mason Fender uses a standard cost system and provide the following information: ( Click the icon to view the information. ) Mason Fender allocates manufacturing
Mason Fender uses a standard cost system and provide the following information:
Click the icon to view the information.
Mason Fender allocates manufacturing overhead to production based on standard direct labor hours. Mason Fender reported the following actual results for : actual number of fenders produced, ; actual variable overhead, $; actual fixed overhead, $; actual direct labor hours,
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Requirement Compute the overhead variances for the year variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance.
Begin with the variable overhead cost and efficiency variances. Select the required formulas, compute the variable overhead cost and efficiency variances, and identify whether each variance is favorable F or unfavorable UYou may need to simply the formula based on the data provided. Abbreviations used. actual cost, actual quantity; FOH fixed overhead; standard cost, standard quantity, VOH variable overhead.
tableFormula,Variance,,VOH cost variance,$VOH efficiency variance,$
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