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Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. The predetermined manufacturing overhead rate is $16.00 per direct
Rogen Corporation manufactures a single product. The standard cost per unit of product is shown below. The predetermined manufacturing overhead rate is $16.00 per direct labor hour ($32.00+2.0). It was computed from a master manufacturing overhead budget based on normal production of 12,000 direct labor hours ( 6,000 units) for the month. The master budget showed total variable costs of $84,000 ( $7.00 per hour) and total fixed overhead costs of $108,000($9.00 per hour). Actual costs for October in producing 4,100 units were as follows. (b) Compute the total overhead variance. Total overhead variance
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