Question;Exercise 21-7A Computation and interpretation of overhead spending, efficiency, and volume variances L.O. P3[The following information applies to the questions displayed below.]Sonic Company set the following standard costs for one unit of its product for 2011.The $3.00 ($2.50 + $0.50) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 50,000 units per month. The following monthly flexible budget information is also available.During the current month, the company operated at 70% of capacity, employees worked 500,000 hours, and the following actual overhead costs were incurred.
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