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Question - The data below relate to a product of AirWay Company.
Standard costs:
Labor, 3 hours at $15 per hour
$45 per unit
Variable overhead at $8 per labor hour
$24 per unit
Budgeted fixed production costs
$140,000 per year
Budgeted production for the year
4,000 units
Actual results were:
Production
3,600 Units
Labor, 10,360 hours
$160,580
Overhead incurred ($142,700 fixed)
$222,200
Required: (Be sure to indicate whether the variances are favorable or unfavorable.)
a. What is the variable overhead efficiency variance?
b. What is the variable overhead price variance?
c. What is the fixed overhead budget variance?
d. What is the fixed production volume variance?
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