Please do not give solution in image format thanku The following information relating to acompany's overhead costs is available.Actual total variable overhead $ 90,000Actual total fixed overhead $ 15,000Budgeted variable overhead rate permachine hour $ 2.50 Budgeted total fixedoverhead $15,000 Budgeted machinehours allowed for actual output 37,000Based on this information, the total variableoverhead variance is:

Lets understand the basics.Total overhead variance between the actual overhead incurred and standard…

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Accounting

The following informatio company's overhead cos

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 12PA: ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc....

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Please do not give solution in image format thanku

The following information relating to a
company's overhead costs is available.
Actual total variable overhead $ 90,000
Actual total fixed overhead $ 15,000
Budgeted variable overhead rate per
machine hour $ 2.50 Budgeted total fixed
overhead $15,000 Budgeted machine
hours allowed for actual output 37,000
Based on this information, the total variable
overhead variance is:

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ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5.000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance?
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