Gleason Company Has Developed the Following Standard Cost Data Based

question 175

Essay

Gleason Company has developed the following standard cost data based on 60,000 direct labor hours,which is 75% of capacity.Fixed overhead is $360,000 and variable overhead is $180,000 at this level of activity.
During the current period,the company operated at 80% of capacity and produced 128,000 units.Actual costs were:
Calculate the variable overhead spending and efficiency variance and the fixed overhead spending and volume variances.Indicate whether each is favorable or unfavorable.

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Definitions:

Endless Chain Referral

A method in sales where a customer is asked to provide the names of other potential customers, creating a "chain" of referrals that can potentially lead to endless opportunities.

Prospecting

The process of searching for potential customers or clients to generate new business opportunities.

New Prospects

Potential customers who have been identified as having a probable interest in a product or service but have not yet made a purchase.

Increase Sales

Strategies or actions taken to upraise the number of products or services sold, thus enhancing revenue.