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The Sanderson Sisters uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires 0.5
The Sanderson Sisters uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires 0.5 standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 100,000 units. Total overhead was budgeted at $337,500 for the year, and the fixed manufacturing overhead rate was $0.75 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below: Actual Production 120,000 units Actual Direct Labor Hours 55.000 Actual Variable Manufacturing Overhead $352,000 Actual Fixed Manufacturing Overhead $50,000 The Sanderson Sisters Production Volume Variance for the year is. $12.500 table $12500 urtavorable $7500 unfavorable $7.500 oratie
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