FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Sheffield Company's overhead rate was based on estimates of $1,238,400 for overhead costs and 103,200 direct labor hours.
Sheffield's standards allow 5 hours of direct labor per unit produced. Production in May was 1,742 units, and actual overhead incurred
in May was $105,370. The overhead budgeted for 8,710 standard direct labor hours is $104,080 ($34,400 fixed and $69,680 variable).
(a)
Compute the total, controllable, and volume variances for overhead.
Total Overhead Variance
Overhead Controllable Variance
Overhead Volume Variance
$
$
$
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Transcribed Image Text:Sheffield Company's overhead rate was based on estimates of $1,238,400 for overhead costs and 103,200 direct labor hours. Sheffield's standards allow 5 hours of direct labor per unit produced. Production in May was 1,742 units, and actual overhead incurred in May was $105,370. The overhead budgeted for 8,710 standard direct labor hours is $104,080 ($34,400 fixed and $69,680 variable). (a) Compute the total, controllable, and volume variances for overhead. Total Overhead Variance Overhead Controllable Variance Overhead Volume Variance $ $ $
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