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:

Spread

The difference between two values, such as the bid and ask prices in financial markets, or the range in statistical data.

Market Maker

An entity that buys and sells securities from their own inventory, facilitating trading and liquidity in the market.

Transactions

The act of conducting business or commercial dealings, such as buying, selling, or exchanging goods, services, or financial instruments.

Profits

The surplus remaining after total costs are deducted from total revenue, and an indicator of the financial health and success of a business.