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Lily Company's overhead rate was based on estimates of $1,353,600 for overhead costs and 112,80 standards allow 4 hours of direct labor per unit produced. Production in May was 2,380 units, and a was $114,940. The overhead budgeted for 9,520 standard direct labor hours is $113,880 ($28,200

Lily Company's overhead rate was based on estimates of $1,353,600 for overhead costs and 112,80 standards allow 4 hours of direct labor per unit produced. Production in May was 2,380 units, and a was $114,940. The overhead budgeted for 9,520 standard direct labor hours is $113,880 ($28,200

FINANCIAL ACCOUNTING
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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* Your answer is incorrect. Lily Company's overhead rate was based on estimates of $1,353,600 for overhead costs and 112,800 direct labor hours. Lily's standards allow 4 hours of direct labor per unit produced. Production in May was 2,380 units, and actual overhead incurred in May was $114,940. The overhead budgeted for 9,520 standard direct labor hours is $113,880 ($28,200 fixed and $85,680 variable). (a) Compute the total, controllable, and volume variances for overhead. Total Overhead Variance tA Overhead Volume Variance Overhead Controllable Variance $ tA +A 1060 175820 Favorable Neither favorable nor unfavorable Unfavorable
Transcribed Image Text:* Your answer is incorrect. Lily Company's overhead rate was based on estimates of $1,353,600 for overhead costs and 112,800 direct labor hours. Lily's standards allow 4 hours of direct labor per unit produced. Production in May was 2,380 units, and actual overhead incurred in May was $114,940. The overhead budgeted for 9,520 standard direct labor hours is $113,880 ($28,200 fixed and $85,680 variable). (a) Compute the total, controllable, and volume variances for overhead. Total Overhead Variance tA Overhead Volume Variance Overhead Controllable Variance $ tA +A 1060 175820 Favorable Neither favorable nor unfavorable Unfavorable
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