Algood Incorporated Is Trying to Decide Which Method of Analyzing

question 15

Essay

Algood Incorporated is trying to decide which method of analyzing its overhead variances provides the most useful information.The following information is available from the records for April: $\begin{array}{|l|r|}\hline \text { Budgeted units of output } & 4,000 \text { tor April } \\\hline \text { Budgeted fixed ouerhead } & \$ 27,000 \text { month } \\\hline \text { Budgeted variable overhead } & \$ 6 / D L H \\\hline \text { Budgeted direct labor hours } & 3 \text { hoursiunit } \\\hline \text { Fixed owerhead incurred } & \$ 26,600 \\\hline \text { Direct labor hours used } & 12,000 \\\hline \text { Variable overhead incurred } & \$ 71,500 \\\hline \text { Actual units produced } & 4,200 \\\hline\end{array}$

Required:
Compute the overhead variances using the following approaches;
(1)Four-way analysis
(2)Three-way analysis
(3)Two-way analysis

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Definitions:

Emotional Intelligence

The capacity to identify, comprehend, and control our personal emotions, as well as to identify, comprehend, and impact the emotions of other people.

Richard Boyatzis

A distinguished professor known for his work in emotional intelligence, behavior change, and competence.

Defensive Behavior

Actions or reactions aimed at protecting oneself from perceived threats or criticism.

Passive-Aggressive

A behavior pattern where individuals express negative feelings indirectly rather than directly addressing them.