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Question - Fargo Corporation reported a $350 favorable price variance for variable overhead and a $4,160 favorable price variance for fixed overhead. The flexible budget had $255,180 variable overhead based on 42,530 direct labor-hours; only 42,170 hours were worked. Total actual overhead was $421,070. The number of estimated hours for computing the fixed overhead application rate totaled 43,140 hours.
Required:
(a) Compute the variable overhead variance.
(b) Compute the fixed overhead variance.
At December 31,2010 the fair value of the Carlin, Inc. bonds was $318,000. What should Richman Co. report as other comprehensive income and as a separate component of stockholders' equity?
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