Lincoln Company
Lincoln Company Applies Overhead Based on Direct Labor $\$ .80$

question 132

Essay

Lincoln Company
Lincoln Company applies overhead based on direct labor hours and has the following available for the current month:
Standard:
Direct labor hous per unit                                                  6
Variable overhead per DLH                                            $\$ .80$
Fixed overhead per DLH
$\text { (based on 11,900 DLHs) }$                                      $\$ 2.10$

Actual:
Units prochuced                                                              2,000
Direct labor hours                                                           11,900
Variable overhead                                                         $9,900
Fixed overheacl                                                            $25,500
Refer to Lincoln Company.Compute all the appropriate variances using the three-variance approach.