3. Factory overhead variance analysis and journal entries. The theoretical capacity of Lawrence Products is 3,600 units or 9.000 direct labor hours. At the normal capacity level (80% of theoretical), the following factory overhead amounts have been budgeted: Fixed.... Variable $4,392 5,904 .... Standards were set as follows: Direct labor, 2.5 hours per unit Factory overhead, $1.43 per direct labor hour Actual data for May were: Production, 2,870 units Labor, 7,150 hours Factory overhead, $10,236 Required: (1) Compute the variances resulting when the two-, three-, and four-variance methe are used. l footonu overh

3. Factory overhead variance analysis and journal entries. The theoretical capacity of Lawrence Products is 3,600 units or 9.000 direct labor hours. At the normal capacity level (80% of theoretical), the following factory overhead amounts have been budgeted: Fixed.... Variable $4,392 5,904 .... Standards were set as follows: Direct labor, 2.5 hours per unit Factory overhead, $1.43 per direct labor hour Actual data for May were: Production, 2,870 units Labor, 7,150 hours Factory overhead, $10,236 Required: (1) Compute the variances resulting when the two-, three-, and four-variance methe are used. l footonu overh

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Description: 3. Factory overhead variance analysis and journal entries. The theoretical capacity ofLawrence Products is 3,600 units or 9.000 direct labor hours. At the normal capacity level(80% of theoretical), the following factory overhead amounts have been bu

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 15E: Factory overhead cost variances The following data relate to factory overhead cost for the...

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