Question
The Malcolm Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of direct labor-hours (DLHs). The
The Malcolm Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of direct labor-hours (DLHs). The standards call for 3 hours of direct labor per unit produced. The following data pertain to the company's manufacturing overhead for the month of July:
Actual fixed overhead cost incurred
$28,450
Budgeted activity
8,400
DLHs
Number of units produced
2,900
units
Budget variance
$3,250
Unfavorable
The production volume variance for July is:
Example of Answer: 4000U4000F(No comma, space, decimal point, or $ sign)
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