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

question 155

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 three-variance approach.

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Definitions:

Inferential Statistics

A branch of statistics that allows one to make predictions or inferences about a population based on a sample.

Type I Error

Deciding wrongly that there was a significant result when in fact there was not.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many types of data where most values cluster around the mean.