The Following Information Comes from the Records of Dina Co

question 8

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The following information comes from the records of Dina Co. for the current period.
a. Compute the overhead controllable and volume variances. In each case, state whether the variance is favorable or unfavorable.
b. Prepare the journal entries to charge overhead costs to goods in process and the overhead variances to their proper accounts. Factory overhead (based on budgeted production of 24,500 units)
Variable overhead $2.25/direct labor hour
Fixed overhead $1.95/direct labor hour

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Definitions:

Price Elastic

Refers to the sensitivity of the demand for a product in response to changes in its price.

Total Revenue

The total amount of money received by a company from its sales of goods or services.

Demand

The desire of purchasers, consumers, or clients for a particular good or service coupled with the ability to pay for it.

Cross-Price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, indicating the relationship between the two products.