Advanced Accounting (Looseleaf)
Advanced Accounting (Looseleaf)
12th Edition
ISBN: 9780077632595
Author: Hoyle
Publisher: MCG
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Chapter 19, Problem 7P
To determine

 Identify the correct option out of the given statements.

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The predetermined overhead rate for Bright Co. is $12, which includes a variable overhead rate of $8 and a fixed overhead rate of $4. The budgeted overhead costs at a normal capacity of 50,000 direct labor hours were divided by the normal capacity of 50,000 hours to arrive at the predetermined overhead rate of $12. The actual overhead for August was $20,000 for variable costs and $15,000 for fixed costs. The standard hours allowed for the product produced in August were 4,000 hours. What is the total overhead variance? A. $20,000 U B. $21,000 F C. $13,000 U D. $23,000 F
Accounting 88
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Chapter 19 Solutions

Advanced Accounting (Looseleaf)

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