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Akimi4 [234]
3 years ago
10

Dubberly Corporation's cost formula for its manufacturing overhead is $32,000 per month plus $50 per machine-hour. For the month

of March, the company planned for activity of 7,800 machine-hours, but the actual level of activity was 7,750 machine-hours. The actual manufacturing overhead for the month was $446,090. The activity variance for manufacturing overhead in March would be closest to____________.
Business
1 answer:
alisha [4.7K]3 years ago
6 0

Answer:

Activity  Variance= $ 58,590 Adverse

Explanation:

<em>The overhead activity variance is the difference between the actual manufacturing overheads and the standard cost of the actual machine hours </em>.

                                                                                                          $

7,750 hours should have cost ( 7,750× $50)                           387,500

Actual manufacturing overheads                                            <u>446,090</u>

Activity  Variance                                                                     <u>  58,590 Adverse</u>

<u />

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