The predetermined overhead rate for Sunland Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $9400 variable and $6950 fixed, and standard hours allowed for the product produced in June was 3200 hours. The total overhead variance is O $3750 F. $350 F. O $350 U. O $3750 U.

The predetermined overhead rate for Sunland Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $9400 variable and $6950 fixed, and standard hours allowed for the product produced in June was 3200 hours. The total overhead variance is O $3750 F. $350 F. O $350 U. O $3750 U.

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Description: The predetermined overhead rate for Sunland Company is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150,000 was divided by a normal capacity of 30,000 direct lab

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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