(Computation of all overhead variances) The manager of the Automobile Registration Division of the state of Nebraska has determined that it typically takes 30 minutes for the department’s employees to register a new car. The following predetermined overhead costs are applicable to Lancaster County. Fixed overhead, computed on an estimated 4,000 direct labor hours, is $8 per DLH. Variable overhead is estimated at $3 per DLH. During July 2001, 7,600 cars were registered in Lancaster County, taking 3,700 direct labor hours. For the month, variable overhead was $10,730 and fixed overhead was $29,950. a. Compute overhead variances using a four-variance approach. b. Compute overhead variances using a three-variance approach. c. Compute overhead variances using a two-variance approach.

(Computation of all overhead variances) The manager of the Automobile Registration Division of the state of Nebraska has determined that it typically takes 30 minutes for the department’s employees to register a new car. The following predetermined overhead costs are applicable to Lancaster County. Fixed overhead, computed on an estimated 4,000 direct labor hours, is $8 per DLH. Variable overhead is estimated at $3 per DLH. During July 2001, 7,600 cars were registered in Lancaster County, taking 3,700 direct labor hours. For the month, variable overhead was $10,730 and fixed overhead was $29,950. a. Compute overhead variances using a four-variance approach. b. Compute overhead variances using a three-variance approach. c. Compute overhead variances using a two-variance approach.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 23Q: If a factory operates at 100% of capacity one month, 90% of capacity the next month, and 105% of...

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Help me please
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