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The Atlanta Company uses a standard cost system in which manufacturing overhead costs are applied to units of the company's single product on the basis
The Atlanta Company uses a standard cost system in which manufacturing overhead costs are applied to units of the company's single product on the basis of direct laborhours DLHs The standard cost card for the product follows:
Standard Cost Cardper unit of product:
Direct Materials, yards at $ per yard
Direct Labor, DLHs at $ per DLH
Variable Overhead, DLHs at $ per DLH
Fixed Overhead, DLHs at $ per DLH
The following data pertain to last year's activities:
The company manufactured units of product during the year. A total of yards of material was purchased during the year at a cost of $ per yard. All of this material was used to manufacture the units.
The company worked direct laborhours during the year at a cost of $ per hour.
The budgeted activity level was direct laborhours.
Budgeted fixed manufacturing overhead costs were $ while actual manufacturing overhead costs were $
Actual variable manufacturing overhead costs were $
Compute the variable overhead spending variance for the year.
Example of Answer: U F No comma, space, decimal point, or $ sign
Answer: U is incorrect
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