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Planned Actual
Production 92,000 units 87,000 units
Direct labor hours 506,800 DL hrs 380,000 DL hrs
Fixed manufacturing overhead $205,000 $182,400
Variable manufacturing overhead $910,000 $841,500
Standard direct labor hour per unit 5.5
Required:
Calculate the following three overhead variances:
a. Overhead volume variance.
b. Overhead efficiency variance.
c. Overhead spending variance.
an application of marginal costing
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