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Question Description

The following data reflect the current month’s activity for Vickers Corporation:

Actual total direct labor

$655,200

Actual hours worked

37,700

Standard labor-hours allowed for actual output (flexible budget)

36,500

Direct labor price variance

$23,400 F

Actual variable overhead

$157,120

Standard variable overhead rate per standard direct labor-hour

$4.20

Variable overhead is applied based on standard direct labor-hours allowed.

Required

Compute the labor and variable overhead price and efficiency variances.

16-39

Information on Carney Company’s fixed overhead costs follows:

Overhead applied

$360,000

Actual overhead

385,500

Budgeted overhead

369,000

Required

What are the fixed overhead price and production volume variances?

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