Problem:
OP co. applies overhead based on direct labor hours & has the following available for November:
STANDARD:
Direct labor hours per unit are 5,
Variable overhead per DLH are $0.75,
Fixed overhead per DLH
(based on 8,900 DLH's)is $1.90
ACTUAL:
Units produced are 1,800,
Direct Labor hours are 8,900,
Variable overhead is $6,400,
Fixed overhead is $17,500
Compute all the appropriate variances using the TWO-VARIANCE approach.