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The Littlefield Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 12 direct labor-hours are
- The Littlefield Company applies manufacturing overhead costs to products on the basis of direct labor-hours. The standard cost card shows that 12 direct labor-hours are required per unit of product. For August, the company budgeted to work 360,000 direct labor-hours and to incur the following total manufacturing overhead costs:
Total fixed overhead costs $475,200
Total variable overhead costs $396,000
During August, the company completed 28,000 units of product, worked 344,000 direct labor-hours, and incurred the following total manufacturing overhead costs: Total fixed overhead costs $461,200
Total variable overhead costs $395,600
The denominator activity in the predetermined overhead rate is 360,000 direct labor-hours. (Note that this is the same data that was provided for the previous question.) The fixed overhead volume variance for August is: $17,200 U.
$19,920 F.
$19,920 U.
$31,680 U.
Total fixed overhead costs | $475,200 |
Total variable overhead costs | $396,000 |
Total fixed overhead costs | $461,200 |
Total variable overhead costs | $395,600 |
$17,200 U. | ||
$19,920 F. | ||
$19,920 U. | ||
$31,680 U. |
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