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Sir i am stuck for this question CoursHeroTranscribedText: Question 5: The Arshman Corporation produces...

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Accounting

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CoursHeroTranscribedText: Question 5: The Arshman Corporation produces one main product. The company employs a standard cost system. Below is October's flexible budget: Factory overhead is applied based on normal capacity. The number of standard direct labor hours allowed for October's production is 850 hours. Actual factory overhead costs for October were $3,350. Actual direct labor hours worked for the month were 910 hours. Normal capacity is 1000 direct labor hours. A job order cost system is used to accumulate costs. Direct labor hours 800 900 1,000 Variable factory overhead: Indirect materials $ 600 $ 675 $ 750 Indirect labor 400 450 500 Supplies 200 225 250 Total variable $1,200 $1,350 $1,500 Fixed factory overhead: Factory rent $ 950 $ 950 $ 950 Depreciation on equipment 700 700 700 Supervisor 240 240 240 Total fixed $1,890 $1,890 $1,890 Total factory overhead $3,090 $3.240 $3,390 Required: Calculate the factory overhead variance for October using Two-factor analysis method. (7 Marks)

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