Dillard, Inc

question 143

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.

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Definitions:

Candy

A sweet confection made primarily from sugar or syrup, often combined with chocolate, fruit, or nuts, and designed to be a treat or dessert.

Governmental Regulations

Rules established by government aimed at controlling the way businesses can operate within society.

Health, Safety

The regulatory standards and practices that protect the well-being of individuals, preventing illness, injury, and other health hazards in various environments.

Cultural

Pertaining to the customs, beliefs, arts, and institutions of a society or group.