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At the beginning of the year, Blue Bird Manufacturing estimated that its annual variable factory overhead would be $405,000, and its fixed factory overhead would be $891,000. The company's payroll consisted of 15 direct labor employees, and each was expected to work 1,800 direct labor hours. Blue Bird applies overhead to products based on direct labor hours. Each finished unit produced by the company is anticipated to require three direct labor hours.
Actual production and cost information for the year is as follows:
Total units produced 8,900 Actual variable overhead $395,000 Actual fixed overhead $910,000 Actual labor hours 26,900 problem (a) Compute the variable overhead variances.
problem (b) Compute the fixed overhead variances.
Compute the amount that should be reported in the operating activities section of the statement of cash flows under the direct method
ACCM4100 Management Accounting Assignment Help and Solution, Individual Excel Assignment Assessment Writing Service - Kaplan Business School.
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