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Vaughn Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and
Vaughn Corp. supplies its customers with high-quality canvas tents. These canvas tents sell for $170 each, with the following DM and DL usage and price expectations. Direct materials 11 square yards per unit @ $5/square yard Direct labor 1.1 DL hours per unit @$15/DL hour Variable-MOH 1.1 DL hours per unit @$2.00/DL hour Fixed-MOH 1.1 DL hours per unit @$4/DL hour Throughout the year, Vaughn used 3,618 DL hours in the process of making 3,350 tents. The company had originally planned to produce and sell 3,100 tents with budgeted fixed-MOH cost of $13,440. Its actual fixed-MOH costs amounted to $13,170 for the year. (a) Determine Vaughn's fixed-MOH price and volume variances. Also identify whether the company's fixed-MOH costs were under- or overapplied, and by how much. Fixed-MOH price variance Fixed-MOH volume variance $ Fixed-MOH Thank and Madin
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