Chapter 1, Problem 1.16E

What is the material price variance?

What is that overhead rate?

Using the high-low method

Compute the company's degree of opereting leverage

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Walker Manufacturing uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. Last year, the company's estimated manufacturing overhead was $1,800,000, and its estimated level of activity was 60,000 direct labor-hours. The company's direct labor wage rate is $15 per hour. Actual manufacturing overhead amounted to $1,720,000, with actual direct labor cost of $930,000. For the year, manufacturing overhead was_.

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