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Meridian Fashions uses standard costs for their manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead cost variance Actual fixed overhead Budgeted fixed overhead $32.000 $24,000 Standard overhead allocation rate S7 2 DLH. Standard direct labor hours per unit Actual output 2,400 units O A. $9,600U O B. $9,600F OC. $8,000 F O D. $8,000 U

Meridian Fashions uses standard costs for their manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead cost variance Actual fixed overhead Budgeted fixed overhead $32.000 $24,000 Standard overhead allocation rate S7 2 DLH. Standard direct labor hours per unit Actual output 2,400 units O A. $9,600U O B. $9,600F OC. $8,000 F O D. $8,000 U

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Meridian Fashions uses standard costs for their manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead cost variance. Actual fixed overhead $32.000 Budgeted fixed overhead $24,000 Standard overhead allocation rate $7 2 DLHr Standard direct labor hours per unit Actual output 2.400 units O A. $9.600 U O B. $9,600 F O C. $8,000 F O D. $8,000U
Transcribed Image Text:Meridian Fashions uses standard costs for their manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead cost variance. Actual fixed overhead $32.000 Budgeted fixed overhead $24,000 Standard overhead allocation rate $7 2 DLHr Standard direct labor hours per unit Actual output 2.400 units O A. $9.600 U O B. $9,600 F O C. $8,000 F O D. $8,000U
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