In October, Cheyenne Inc. reports 42,500 actual direct labor hours and incurs $204,000 of manufacturing overhead costs. Standard hours allowed for the month's production is 41,500 hours. Cheyenne's predetermined overhead rate is $5.10 per direct labor hour. The flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $65,000 fixed. Compute the manufacturing overhead volume variance. Normal capacity was 50,000 direct labor hours. Identify whether the variance is favorable or unfavorable. Total manufacturing overhead volume variance $ Unfavorable

In October, Cheyenne Inc. reports 42,500 actual direct labor hours and incurs $204,000 of manufacturing overhead costs. Standard hours allowed for the month's production is 41,500 hours. Cheyenne's predetermined overhead rate is $5.10 per direct labor hour. The flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $65,000 fixed. Compute the manufacturing overhead volume variance. Normal capacity was 50,000 direct labor hours. Identify whether the variance is favorable or unfavorable. Total manufacturing overhead volume variance $ Unfavorable

Name: Vinubhai In October, Cheyenne Inc. reports 42,500 actual direct labor
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Description: Vinubhai In October, Cheyenne Inc. reports 42,500 actual direct labor hours and incurs $204,000 of manufacturing overhead costs. Standardhours allowed for the month's production is 41,500 hours. Cheyenne's predetermined overhead rate is $5.10 per dir

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 17E

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