20 acct questions 2

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In October, Sandhill Company reports 18,100 actual direct labor hours, and it incurs $153,300 of manufacturing overhead costs. Standard hours allowed for the work done is 21,900 hours. The predetermined overhead rate is $7.10 per direct labor hour. In addition, the �exible manufacturing overhead budget shows that budgeted costs are $5.04 variable per direct labor hour and $51,500 �xed.

Compute the overhead volume variance. Normal capacity was 25,000 direct labor hours.

Overhead Volume Variance $

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221 Final Exam Ch 14-27

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