At the Beginning of the Year,Hilliard Company Estimated That Its

question 94

Essay

At the beginning of the year,Hilliard Company estimated that its total overhead cost would be $250,000 and its production volume would be 80,000 units.Total actual overhead cost for the year was $246,000.The actual number of units produced during the year was 78,000.
Required:
1)What amount of overhead was applied to the products Hilliard completed during the year?
2)Calculate the volume variance for the year.Indicate whether it is favorable or unfavorable.Do not round intermediate calculations.
3)Calculate the spending variance for the year.

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Definitions:

Perishable Product

Items that have a limited shelf life and require timely sale and use, such as food, flowers, and some pharmaceuticals.

Privileged Information

Sensitive information that is not publicly available and is restricted to certain individuals or groups due to its confidentiality.

Situational Self-Image

The image or conception that individuals have of themselves in specific situations, which can change depending on context and environment.

Decision-Making Time

The period during which a person or group considers various options and outcomes before making a final choice.