Adams Company established a predetermined variable overhead cost rate at $10.00 per direct labor hour....
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Accounting
Adams Company established a predetermined variable overhead cost rate at $10.00 per direct labor hour. The actual variable overhead cost rate was $9.10 per hour. The planned level of labor activity was 74,500 hours of labor. The company actually used 79,000 hours of labor.
Required
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Determine the total flexible budget variable overhead cost variance and indicate the effect of the variance by selecting favorable (F) or unfavorable (U).
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