You Have Just Been Hired as the New Executive Assistant

question 86

Essay

You have just been hired as the new executive assistant to the manager of the Eastern Division of Global Manufacturing. You have been given the following incomplete records concerning manufacturing overhead for last year: The company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard direct labor-hours (DLHs).
Required:
a. Compute the variable overhead rate variance and indicate whether it was favorable or unfavorable.
b. Compute the fixed overhead volume variance and indicate whether it was favorable or unfavorable.

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Definitions:

Borrow

The act of receiving something with the intent to return it, often referring to money in the context of loans where interest may be charged.

Standard Deviations

A statistic that measures the dispersion of a dataset relative to its mean, used to quantify the amount of variation or spread of a set of data values.

Stocks A and B

Placeholder names used in discussions to refer to two specific, but unspecified, stocks or to compare aspects of different stocks.