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The following information relates to Brook, Inc. ' s overhead costs for the month: ( Click the icon to view the information. ) Begin by
The following information relates to Brook, Inc.s overhead costs for the month:
Click the icon to view the information.
Begin by selecting the formulas needed to compute the variable overhead VOH and fixed overhead FOH variances, and then compute each variance amount.
Requirement Explain why the variances are favorable or unfavorable.
The variable overhead cost variance is
The variable overhead efficiency variance is
because Brook actually spent
than budgeted.
because the actual hours used was
than budgeted.
The fixed overhead cost variance is
because Brook actually spent
than budgeted for fixed overhead.
The fixed overhead volume variance is
because Brook allocated
overhead to jobs than the budgeted fixed overhead amount.
Data table
Brook allocates manufacturing overhead to production based on
standard direct labor hours. Last month, Brook reported the
following actual results: actual variable overhead, $; actual
fixed overhead, $; actual production of units at
direct labor hours per unit. The standard direct labor time is
direct labor hours per unit static direct labor hours
static units
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