The Following Data for November Have Been Provided by Norton

question 10

Essay

The following data for November have been provided by Norton Corporation,a producer of precision drills for oil exploration: $$\begin{array} { | l | r | l | } \hline \text { Budgeted production } & 4,000 & \text { drills } \\\hline \text { Standard machine-hours per } & 8.4 & \text { machine-hours } \\\text { drill } & \$ 9.40 & \begin{array} { l } \text { per machine- } \\\text { hour }\end{array} \\\hline \text { Standard indirect labor } & \$ 2.90 & \begin{array} { l } \text { per machine- } \\\text { hour }\end{array} \\\hline \text { Standard power } & 4,300 & \text { drills } \\\hline \text { Actual production } & 36,530 & \text { machine-hours } \\\hline \text { Actual machine-hours } & \$ 362,756 & \\\hline \text { Actual indirect labor } & \$ 97,693 &\end{array}$$
Required:
Compute the variable overhead rate variances for indirect labor and for power for November.Indicate whether each of the variances is favorable (F)or unfavorable (U).Show your work!

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Definitions:

US Dollars

The official currency of the United States, widely used in international transactions.

International Bond

Any bond sold outside the country of the borrower. There are two types of international bonds: Eurobonds and foreign bonds.

Eurobonds

International bonds that are denominated in a currency not native to the country where it is issued, allowing investors and issuers to access global capital markets.

Foreign Bonds

Bonds issued in a domestic market by a foreign entity, in the currency of the domestic market, as a way for the issuer to raise capital.