Essay
Palek Company has adopted the following standards: 
Palek's January budget was based on normal volume of 40,000 standard labor hours. During January, Palek produced 7,900 units with records indicating the following data: 
Assuming Palek uses the three-variance method of analyzing factory overhead, compute the following variances for the month of January and indicate whether each is favorable or unfavorable:
a.Factory overhead budget variance
b.Factory overhead capacity variance
c.Factory overhead efficiency variance
Correct Answer:
Verified
Correct Answer:
Verified
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