3. Rollerblade Corp. has budgeted fixed overhead costs of $50,000 per month plus a variable...
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Accounting
3. Rollerblade Corp. has budgeted fixed overhead costs of $50,000 per month plus a variable rate of $4 per direct labor hour. The total factory overhead rate is $6. Actual factory overhead in October is $115,000 and 18,000 direct labor hours were reported. REQUIRED:
A. Compute the total amount of budgeted overhead. (i. e. the amount of overhead that appears on the flexible budget)
B. Compute the spending variance.
C. Compute the efficiency variance.
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