Gleason Company Has Developed the Following Standard Cost Data Based

question 161

Essay

Gleason Company has developed the following standard cost data based on 60,000 direct labor hours, which is 75% of capacity. Fixed overhead is $360,000 and variable overhead is $180,000 at this level of activity.


During the current period, the company operated at 80% of capacity and produced 128,000 units. Actual costs were:
Calculate the variable overhead spending and efficiency variance and the fixed overhead spending and volume variances. Indicate whether each is favorable or unfavorable.

Understanding of short-run and long-run equilibrium in the economy.

Knowledge of factors that cause shifts in aggregate supply and demand.

Ability to analyze the effects of fiscal and monetary policy on the economy.

Understanding of the concept of stagflation and its causes.

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Definitions:

Cyanosis

A bluish or purplish discoloration of the skin and mucous membranes due to insufficient oxygen in the blood.

Erythema

Redness of the skin or mucous membranes, often caused by dilation and congestion of the capillaries, typically a sign of inflammation or infection.

Ecchymosis

The appearance of a large, discolored area on the skin, caused by bleeding underneath, typically resulting from bruising.

Skin Mobility

The ease with which skin can be moved or lifted, often assessed in the evaluation of edema, dehydration, or certain skin conditions.