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Trilite Windows Manufactures Windows

question 131

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Trilite Windows manufactures windows.The current year operating budget is based on production of 56,000 windows with 1.0 machine hours allowed per window.Variable manufacturing overhead is anticipated to be $896,000.Actual production for was 58,000 windows using 60,000 machine hours.Actual variable costs were $15 per machine hour.Required:
Determine the variable overhead rate and efficiency variances.


Definitions:

Employee Time

The recorded hours worked by employees, often used for productivity analysis, payroll, and scheduling purposes.

Space Occupied

Refers to the area utilized by a company for its operations, including manufacturing, storage, or office space.

After-Sales Department

A division of a business that handles customer service, support, and warranty claims after the sale of a product.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed, instead of adjusting net income on an accrual basis.

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