Selected Information from Michaels Company's Flexible Budget Is Presented Below

question 79

Essay

Selected information from Michaels Company's flexible budget is presented below:
Michaels Company applies overhead to production at a rate of $31.25 per unit based on a normal operating level of 80% of capacity. For the current period, Michaels Company produced 5,400 units and incurred $62,000 of fixed overhead costs and $96,000 of variable overhead costs. The company used 11,000 labor hours to produce the 5,400 units. Calculate the variable overhead spending and efficiency variances, and the fixed overhead spending and volume variances. Indicate whether each variance is favorable or unfavorable.
Variable overhead

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Definitions:

Bankruptcy Judges

Judicial officers specialized in handling bankruptcy cases, with the authority to make legal judgments and decisions regarding bankruptcy filings.

Chapter 7

A section of U.S. bankruptcy law under which a debtor's assets are liquidated and proceeds distributed to creditors.

Unsecured Creditor

A creditor that extends credit without requiring specific collateral, bearing higher risk if the borrower defaults.

Claim

A demand for something due or believed to be due, typically a request for payment in accordance with an insurance policy or other formal agreement.