Dillard, Inc

Essay

Dillard, Inc., has developed the following standard cost data based on a denominator volume of 60,000 direct labor hours (DLHs). Budgeted fixed overhead is $360,000 and budgeted variable overhead is $180,000 at this level of activity. During the last period, the company used 48,000 DLHs to produce 128,000 units. It incurred the following manufacturing costs: Required: Determine all variances for direct materials, direct labor, and factory overhead. Use a 4-variance breakdown (decomposition) of the total overhead variance for the period. Note: this problem requires knowledge from Chapter 14.