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

question 91

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 four-variance approach.

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Definitions:

Intramembranous Ossification

A process by which flat bones, such as those of the skull, are formed directly from mesenchymal tissue without a cartilage model.

Appositional Growth

A process of growth where new layers of tissue are added to the surface of an organ or bone, leading to an increase in diameter.

Osteomyelitis

A severe infection of the bone, bone marrow, and surrounding soft tissue, typically caused by bacteria.

Staphylococcus Aureus

A type of bacteria commonly found on the skin and in the nose, which can cause a range of infections, from minor skin infections to more serious diseases.