er and Under, Inc. manufactures weaving looms. Before the period began, the company prepared the following manufacturing overhead budget for an expected activity level of 15,000 direct labor hours (DL hrs): iable Manufacturing Overhead Costs ed Manufacturing Overhead Costs $322.500 $205,000 he end of the period, the company noted that 3,000 fewer direct labor hours were logged than expected. The total actual manufacturing overhead costs incurred during the period was $545,000, of which, $325,000 was fixed. ch of the following statements is incorrect for the above data? A. The total volume variance can be calculated by multiplying the unit variable cost by the difference between the expected DL hrs and the actual DL hrs. B. The master budget variance related to fixed manufacturing overhead costs for the period equals $120,000. c. The volume variance for variable manufacturing overhead costs is favorable because fewer DL hrs were logged during production than expected. D. The company's flexible budget variance for total manufacturing overhead costs during the period equals $82,000. E. The flexible budget is populated using the cost behavior eguation developed from the actual manufacturing overhead costs.

er and Under, Inc. manufactures weaving looms. Before the period began, the company prepared the following manufacturing overhead budget for an expected activity level of 15,000 direct labor hours (DL hrs): iable Manufacturing Overhead Costs ed Manufacturing Overhead Costs $322.500 $205,000 he end of the period, the company noted that 3,000 fewer direct labor hours were logged than expected. The total actual manufacturing overhead costs incurred during the period was $545,000, of which, $325,000 was fixed. ch of the following statements is incorrect for the above data? A. The total volume variance can be calculated by multiplying the unit variable cost by the difference between the expected DL hrs and the actual DL hrs. B. The master budget variance related to fixed manufacturing overhead costs for the period equals $120,000. c. The volume variance for variable manufacturing overhead costs is favorable because fewer DL hrs were logged during production than expected. D. The company's flexible budget variance for total manufacturing overhead costs during the period equals $82,000. E. The flexible budget is populated using the cost behavior eguation developed from the actual manufacturing overhead costs.

Name: Over and Under, Inc. manufactures weaving looms. Before the period be
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Description: Over and Under, Inc. manufactures weaving looms. Before the period began, the company prepared the following manufacturing overhead budget for an expected activity level of 15,000 direct labor hours (DL hrs):Variable Manufacturing Overhead Costs$322

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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