(a)
Variances: The variances are used to calculate the find the variation in actual cost by comparing it to the
Overhead Controllable Variance: Overhead controllable variance is determined by subtracting budgeted overhead to be incurred in standard hours from actual overhead incurred in the standard hours
Overhead Volume Variance: Overhead volume variance is the determined by multiplying the difference of normal capacity and standard hours with the fixed overhead rate.
To determine: The total, controllable and volume variances for overhead.
(b)
To identify: The possible causes of the variances computed in part (a).

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Chapter 26 Solutions
ACCOUNTING PRINCIPLES-W/WILEYPLUS
- Job 528 was one of the many jobs started and completed during the year. The job required $11,200 in direct materials and 40 hours of direct labor time at a total direct labor cost of $12,600. If the job contained five units and the company billed at 65% above the unit product cost on the job cost sheet, what price per unit would have been charged to the customer?arrow_forwardCalculate the net cash provided by operating activities of this financial accounting questionarrow_forwardgiven answer of this General accounting questionarrow_forward
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- 4 POINTSarrow_forwardIn the month of September, a department had 9,500 units in beginning work in process that were 60% complete. During September, 28,500 units were transferred into production from another department. At the end of September, there were 5,500 units in ending work in process that were 50% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. A. The equivalent units of production for materials in September were __. B. The equivalent units of production for conversion costs for September were __.arrow_forwardAnswer ?arrow_forward
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