Budgeted overhead for Sunland Company at the normal capacity of 30,000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May, $302,400 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead controllable variance is: a. $5,000 favorable b. $17,600 favorable c. $9,600 favorable d. $17,600 unfavorable

Budgeted overhead for Sunland Company at the normal capacity of 30,000 direct labor hours is $6 per hour variable and $4 per hour fixed. In May, $302,400 of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead controllable variance is: a. $5,000 favorable b. $17,600 favorable c. $9,600 favorable d. $17,600 unfavorable

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 16E: Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of...

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