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.
Required:
Determine (to the nearest dollar each) all variances for direct materials, direct labor, and factory overhead. Use a 4-variance breakdown (decomposition) of the total overhead variance for the period. Assume that the direct materials price variance is calculated at point of production, not point of purchase. Note: this problem requires knowledge from Chapter 14.
Definitions:
Gambler's Fallacy
The erroneous belief that if an event occurs more frequently than normal during a given period, it will happen less frequently in the future, or vice versa.
Midterms
Examinations given in the middle of an academic term to assess students' understanding of the course material up to that point.
Exceptionally Bright
Describing someone with superior intelligence, creativity, or ability, often significantly above the norm.
Conjunction Fallacy
A cognitive error where individuals assume that specific conditions are more probable than a single general one.
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