Gantt Textiles Inc

question 31

Essay

Gantt Textiles Inc. incurred actual variable overhead expenses of $50,000 in the current year for the production of 6,000 units. Variable overhead was applied at a rate of $3.25 per direct labor hour and 2 direct labor hours were budgeted for each unit. The company used 16,000 direct labor hours for production.
Required: Compute each of the following variances. Indicate whether the variance is favorable (F) or unfavorable (U).

---

Definitions:

Disagrees

Occurs when individuals or groups have differing opinions, perspectives, or preferences.

Unimportant

Indicates something that does not hold much significance or value in a given context.

Antecedents

Factors or events that precede and contribute to the occurrence of a specific behavior or outcome, often studied to predict or modify future behaviors.

Manifest Conflict

A clear and observable struggle between individuals or groups over incompatible goals or resources.