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Standard Company has developed standard manufactur...

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Solution


Question

Standard Company has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor hours as follows: Standard overhead costs per unit: Variable portion 2 hours @ $3 = $ 6 per unit Fixed portion 2 hours @ $5 = $10 per unit The following data pertain to operations in April: Actual output 80,000 units Actual direct labor cost $644,000 Actual direct labor hours worked 165,000 hours Actual variable overhead cost incurred $518,000 Actual fixed overhead cost incurred $860,000 The fixed overhead volume variance for April was: (Points : 5) $ 60,000 favorable. $100,000 favorable. $ 60,000 unfavorable. $100,000 unfavorable.,could you please explain to me how you got the $100,000? thanks

 

Paper#6359 | Written in 18-Jul-2015

Price : $25
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