Gerhan Company's flexible budget for the units manufactured in May shows $15,600 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company worked 6,000 DLHS and incurred $18,500 of total factory overhead cost during May, including $6,800 for fixed factory overhead. Under a three-variance breakdown (decomposition) of the total overhead variance, what is the total factory overhead spending variance (to the nearest whole dollar) for May? (Round your intermediate calculation to 2 decimal places.)

Gerhan Company's flexible budget for the units manufactured in May shows $15,600 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 6,120 DLHs, which represents 90% of available capacity. The company worked 6,000 DLHS and incurred $18,500 of total factory overhead cost during May, including $6,800 for fixed factory overhead. Under a three-variance breakdown (decomposition) of the total overhead variance, what is the total factory overhead spending variance (to the nearest whole dollar) for May? (Round your intermediate calculation to 2 decimal places.)

Name: Gerhan Company's flexible budget for the units manufactured in May sh
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Description: Gerhan Company's flexible budget for the units manufactured in May shows $15,600 of total factory overhead; this output level represents70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct

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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