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Please answer both parts of the question ASAP! Will rate! World Company expects to operate at 80% of its productive capacity of 62,500 units per
Please answer both parts of the question ASAP! Will rate!
World Company expects to operate at 80% of its productive capacity of 62,500 units per month. At this planned level, the company expects to use 26,500 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.530 direct labor hours per unit. At the 80% capacity level, the total budgeted cost includes $45,050 fixed overhead cost and $323,300 variable overhead cost. In the current month, the company incurred $370,000 actual overhead and 23,500 actual labor hours while producing 47,000 units. (1) Compute the overhead volume variance. (2) Compute the overhead controllable variance. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the overhead volume variance. Classify as favorable or unfavorable. (Round "OH costs per DL hour" to 2 decimal places.) Fixed Overhead Applied Fixed OH per DL hr. Standard DL hours 1.70 X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the overhead volume variance. Classify as favorable or unfavorable. (Round "OH costs per DL hour" to 2 decimal places.) Fixed Overhead Applied Fixed OH per DL hr. - 1.70 Standard DL hours Fixed Overhead applied Volume Variance Volume variance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the overhead controllable variance. Classify as favorable or unfavorable. Total actual overhead Flexible budget overhead Total Overhead controllable varianceStep by Step Solution
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