MANAGERIAL ACCOUNTING FOR MANAGERS
MANAGERIAL ACCOUNTING FOR MANAGERS
5th Edition
ISBN: 9781264196456
Author: Noreen
Publisher: MCG
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Chapter 10, Problem 10.9Q
To determine

Concept introduction:

A variance indicates the difference between the standard amount and the actual amount of an item. The variances are used in the budgetary control techniques to evaluate the performance of the business. The variances can be divided into two types; quantity variance and price variance. 

To indicate: if the variable overhead efficiency variance shall be favorable or unfavorable, or could it be either.  

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Vistar Manufacturing bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,200 direct labor-hours will be required in July. The variable overhead rate is $4.85 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $125,000 per month, which includes depreciation of $10,500. All other fixed manufacturing overhead costs represent current cash flows. What should be the July cash disbursements for manufacturing overhead on the manufacturing overhead budget?
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