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    lisa2020's Avatar
    lisa2020 Posts: 1, Reputation: 1
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    #1

    Dec 5, 2008, 09:21 PM
    Overhead Controllable Variance
    Okay, so here's my assignment. I got all of the answers except overhead controllable variance. I just cannot seem to get it. Please help!

    Dinkel Manufacturing Corporation accumulates the following data relative to jobs started and finished during the month of June 2008.
    Costs and Production Data


    Actual Standard

    Raw materials unit cost $2.70 $2.40
    Raw materials units used 10,640 10,020
    Direct labor payroll $147,288 $144,096
    Direct labor hours worked 14,440 15,010
    Manufacturing overhead incurred $184,700
    Manufacturing overhead applied $189,126
    Machine hours expected to be used at normal capacity 42,500
    Budgeted fixed overhead for June $51,000
    Variable overhead rate per hour $3.00
    Fixed overhead rate per hour $1.20


    Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $459,500. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used.



    Compute all of the variances for (1) direct materials, (2) direct labor, and (3) manufacturing overhead.
    Total materials variance $ 4680 Unfavorable
    Materials price variance $ 3192 Unfavorable
    Materials quantity variance $ 1488 Unfavorable
    Total labor variance $ 3192 Unfavorable
    Labor price variance $ 8664 Unfavorable
    Labor quantity variance $ 5472 Favorable
    Total overhead variance $ 4426 Favorable
    Overhead controllable variance $?? Favorable
    Overhead volume variance $ 3036 Favorable
    lbslo7's Avatar
    lbslo7 Posts: 5, Reputation: 1
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    #2

    Jun 2, 2009, 12:58 PM

    OK... so I have almost the same question except The only ones I was ABLE to get were the material variances. How did you get the labor variances and overhead variances?

    Im completely stuck on that

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