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The following information is for the third quarter of this year:

The following information is for the third quarter of this year:

Planned

Production 92,000 units
Direct labor hours 506,800 DL hrs
Fixed manufacturing overhead $205,000
Variable manufacturing overhead $910,000
Standard direct labor hour per unit 5.5

Actual
Production 87,000 units
Direct labor hours 380,000 DL hrs
Fixed manufacturing overhead $182,400
Variable manufacturing overhead $841,500

Calculate the following three overhead variances.

a. Overhead volume variance
b. Overhead efficiency variance
c. Overhead spending variance
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8441840.xlsx

SOLUTION
The following formulas is used for calculating the variances:O/H Volume variance = ( Bud. O/H *
unit produced ) Bud. Production O/H Efficiency variance = Bud. O/H rate * ( unit produced -...

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