Homework SourseJames Corp applies overhead on the basis of direct labor hou
James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 8,400 units (80% of its production capacity of 10,500 units) and prepared the following overhead budget:
Solution
Solution 1:
Solution 2:
Solution 3:
| Controllable variance | |||
| Total actual overhead | $99,805.00 | ||
| Flexible budget overhead: | |||
| Variable | $51,975.00 | ||
| Fixed | $46,200.00 | ||
| Total | $98,175.00 | ||
| Overhead controllable variance | $1,630.00 | U |
