Garfield Company
Garfield Company Applies Overhead Based on Direct Labor $\$ 7.5$

question 210

Essay

Garfield Company
Garfield Company applies overhead based on direct labor hours and has the following available for the current month:
Standard:
Direct labor hous per unit                                                  5
Variable overhead per DLH                                            $\$ 7.5$
Fixed overhead per DLH
$\text { (based on 8,900 DLHs) }$                                      $\$ 1.90$

Actual:
Units prochuced                                                              1,800
Direct labor hours                                                           8,900
Variable overhead                                                         $6,400
Fixed overheacl                                                            $17,500
Refer to Garfield Company.Compute all the appropriate variances using the two-variance approac

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