The following information was gathered for Larsen Corp. for the year ending 20xx. Budgeted direct labor hours 15,500 Actual direct labor hours 16,200 Budgeted factory overhead cost $73,625 Actual factory overhead cost $74,990 -Assume direct labor hours is the cost driver Required: What is the amount of over/underapplied overhead ? Is the variance over or under estimated ?
The following information was gathered for Larsen Corp. for the year ending 20xx. Budgeted direct labor hours 15,500 Actual direct labor hours 16,200 Budgeted factory overhead cost $73,625 Actual factory overhead cost $74,990 -Assume direct labor hours is the cost driver Required: What is the amount of over/underapplied overhead ? Is the variance over or under estimated ?
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 16E: Thomas Textiles Corporation began November with a budget for 60,000 hours of production in the...
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Question
The following information was gathered for Larsen Corp. for the year ending 20xx.
Budgeted direct labor hours 15,500
Actual direct labor hours 16,200
Budgeted
Actual factory overhead cost $74,990
-Assume direct labor hours is the cost driver
Required:
What is the amount of over/underapplied overhead ?
Is the variance over or under estimated ?
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