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The following information comes from the records of Magno Co. for the current period.
a. Compute the overhead controllable and volume variances. In each case, state whether the variance is favorable or unfavorable.
b. Prepare the journal entries to charge overhead costs to work in process and the overhead variances to their proper accounts.
Factory overhead (based on budgeted production of 24,500 units)
Variable overhead $2.25/direct labor hour
Fixed overhead $1.95/direct labor hour
Interval Variables
Quantitative variables where the intervals between the values are equal and meaningful, allowing for comparisons and mathematical operations.
Symmetric Distribution
A distribution where the left and right sides are mirror images of each other around the central point.
Skewed Distribution
A probability distribution that is not symmetrical, where one tail is longer or fatter than the other.
Bell Shaped
A bell-shaped distribution refers to a data distribution that is symmetric and has a single peak in the middle, resembling the shape of a bell, commonly associated with the normal distribution.
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