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Deluxe, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Deluxe allocates manufacturing overhead to production based on standard direct labor hours. Deluxe reported the following actual results for 2024: actual number of units produced, 1,000, am variable overhead, $5,000, actual fixed overhead, $3,200; actual direct labor hours, 1,400. Read the requirements. Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours Print $2,100 $2,800 1,400 hours 700 units 2 hours per unit Done Requirements 1. 2. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances Explain why the variances are favorable or unfavorable irect labor hour was sed Print Done than the standard cost per direct labor hour. - X nce is favor direct labor hours than standard and variable overhead is applied (incurred) based on direct labe

Deluxe, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Deluxe allocates manufacturing overhead to production based on standard direct labor hours. Deluxe reported the following actual results for 2024: actual number of units produced, 1,000, am variable overhead, $5,000, actual fixed overhead, $3,200; actual direct labor hours, 1,400. Read the requirements. Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours Print $2,100 $2,800 1,400 hours 700 units 2 hours per unit Done Requirements 1. 2. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances Explain why the variances are favorable or unfavorable irect labor hour was sed Print Done than the standard cost per direct labor hour. - X nce is favor direct labor hours than standard and variable overhead is applied (incurred) based on direct labe

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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< Deluxe, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Deluxe allocates manufacturing overhead to production based on standard direct labor hours. Deluxe reported the following actual results for 2024: actual number of units produced, 1,000, actual variable overhead, $5,000, actual fixed overhead, $3,200; actual direct labor hours, 1,400. Read the requirements Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours Print The fixed overhead cost variance is The fixed overhead volume variance is $2,100 $2,800 1,400 hours 700 units 2 hours per unit Done Requirements 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable irect labor hour was sed Print Done because the total fixed overhead cost was because total fixed overhead cost allocated to units was than the standard cost per direct labor hour. than the amount budgeted for total fixed overhead. direct labor hours than standard and variable overhead is applied (incurred) based on direct labor - X than the total budgeted fixed overhead cost. nce is favorable (F)
Transcribed Image Text:< Deluxe, Inc. uses a standard cost system and provides the following information. (Click the icon to view the information.) Deluxe allocates manufacturing overhead to production based on standard direct labor hours. Deluxe reported the following actual results for 2024: actual number of units produced, 1,000, actual variable overhead, $5,000, actual fixed overhead, $3,200; actual direct labor hours, 1,400. Read the requirements Data table Static budget variable overhead Static budget fixed overhead Static budget direct labor hours Static budget number of units Standard direct labor hours Print The fixed overhead cost variance is The fixed overhead volume variance is $2,100 $2,800 1,400 hours 700 units 2 hours per unit Done Requirements 1. Compute the variable overhead cost and efficiency variances and fixed overhead cost and volume variances. 2. Explain why the variances are favorable or unfavorable irect labor hour was sed Print Done because the total fixed overhead cost was because total fixed overhead cost allocated to units was than the standard cost per direct labor hour. than the amount budgeted for total fixed overhead. direct labor hours than standard and variable overhead is applied (incurred) based on direct labor - X than the total budgeted fixed overhead cost. nce is favorable (F)
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