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Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767 Exercise 44
Overhead Variances
At the beginning of the year, Gaillard Company had the following standard cost sheet for one of its chemical products:
Gaillard computes its overhead rates using practical volume, which is 144,000 units. The actual results for the year are as follows: (a) Units produced: 143,400; (b) Direct labor: 286,400 hours at $18.10; (c) FOH : $1,235,900; and (d) VOH : $259,300.
Required:
1. Compute the variable overhead spending and efficiency variances.
2. Compute the fixed overhead spending and volume variances.
At the beginning of the year, Gaillard Company had the following standard cost sheet for one of its chemical products:
Gaillard computes its overhead rates using practical volume, which is 144,000 units. The actual results for the year are as follows: (a) Units produced: 143,400; (b) Direct labor: 286,400 hours at $18.10; (c) FOH : $1,235,900; and (d) VOH : $259,300.
Required:
1. Compute the variable overhead spending and efficiency variances.
2. Compute the fixed overhead spending and volume variances.
Explanation
Verified
Verified
Average variable overhead rate = 
Vari...
Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
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