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Eastern Company Uses a Standard Cost System in Which Manufacturing

Question 45

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Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs).The denominator activity level is 60,000 direct labor-hours, or 300,000 units.
• A standard cost card for the company's product follows: Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs).The denominator activity level is 60,000 direct labor-hours, or 300,000 units. • A standard cost card for the company's product follows: • Actual data for the year follow: Required: a.Compute the variable overhead rate and efficiency variances. b.Compute the fixed manufacturing overhead budget and volume variances. • Actual data for the year follow: Eastern Company uses a standard cost system in which manufacturing overhead is applied to units of product on the basis of standard direct labor-hours (DLHs).The denominator activity level is 60,000 direct labor-hours, or 300,000 units. • A standard cost card for the company's product follows: • Actual data for the year follow: Required: a.Compute the variable overhead rate and efficiency variances. b.Compute the fixed manufacturing overhead budget and volume variances. Required:
a.Compute the variable overhead rate and efficiency variances.
b.Compute the fixed manufacturing overhead budget and volume variances.

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a.Variable overhead variances:

Variable...

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