COST ACCT-W/ACCESS >C< NON-MAJORS
COST ACCT-W/ACCESS >C< NON-MAJORS
15th Edition
ISBN: 9781269768191
Author: Horngren
Publisher: PEARSON C
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Chapter 14, Problem 14.12Q

Show how managers can gain insight into the causes of a sales-volume variance by subdividing the components of this variance.

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Marquis Company estimates that annual manufacturing overhead costs will be $975,600. Estimated annual operating activity bases are direct labor costs of $567,000, direct labor hours 45,700, and machine hours 99,400. Compute the predetermined overhead rate for each activity base. a. Overhead rate per direct labor cost. b. Overhead rate per direct labor hour. c. Overhead rate per machine hour.
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