Activity 9.At the commencement of the financial year a business estimated that their overhead would be $720,000 and their direct labour costs would be $1,44m.At the end of the financial year the actual data reveals that the overhead was $770,000. Direct labour cost was calculated to be $1.54m.The business uses normal costing and applies overhead on the basis of direct labour cost. The cost of goods sold before making adjustments for any overhead variance is $856,000.Calculate the overhead variance for the year and dispose of the overhead variance by adjusting the costs of goods sold.
Activity 10.1.A furniture manufacturer predicts that they will sell 12,000 of product A and 8,000 of product B in the next financial period. They prepare their budget accordingly.