INTERMEDIATE ACCOUNTING-NEXTGEN ACCESS
17th Edition
ISBN: 9781119659747
Author: Kieso
Publisher: WILEY
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The standard cost of Product ZT includes 3.5 hours of direct labor at $16 per hour. The predetermined overhead rate is $28 per direct labor hour. During August, the company incurred 5,100 hours of direct labor at an average rate of $15.75 per hour and $148,400 of manufacturing overhead costs. It produced 1,400 units. Compute the total overhead variance.
Please explain the solution to this general accounting problem using the correct accounting principles.
What was the company's total revenue for the year?
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