Manufacturing overhead = $600,000 + $2 per direct labor hour

Gagne has budgeted 300,000 direct labor hours for the year. Actual results were
320,000 direct labor hours and $1,249,000 total manufacturing overhead.

a. Find the predetermined overhcrisis has a huge impact on the way Apple Inc. does
business. During the Great
Recession America experienced prolonged periods of stagflation in the economy; the inflation
and unemployment rates spiked while the country experienced slowed economic growth.
Because their products are perceived as luxury items there were periods where consumers
were
choosing more cost-effective products and spending less on the Apple brand. The global
andcrisis has a huge impact on the way Apple Inc. does business. During the Great
Recession America experienced prolonged periods of stagflation in the economy; the inflation
and unemployment rates spiked while the country experienced slowed economic growth.
Because their products are perceived as luxury items there were periods where consumers
were
choosing more cost-effective products and spending less on the Apple brand. The global and
ead rate.

b. Find total overhead applied for the year.

c. Compute (overapplied underapplied) overhead and circle the correct direction.

d. Find the overhead budget variance and state whether favorable or unfavorable.

e. Compute the volume variance and state whether favorable or unfavorable

SOLUTION: