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Question - Shaw Incorporated began this period with a budget for 1,050 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $97.500, and actual units produced were 950. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH.
Variable overhead $52,500
Fixed overhead 42,500
Total overhead $95,000
Required -
a. Compute controllable variance.
b. Compute volume variance.
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