81 802
Assignments Done
99,1%
Successfully Done
In November 2019

# Answer to Question #65012 in Other Economics for afzal khan

Question #65012
At the commencement of the financial year a business estimated that their overhead would be \$720,000 and their direct labour costs would be \$1.44 million. At the end of the financial year the actual data reveals that the overhead was \$770,000. Direct labour cost was calculated to be \$1.54 million. The business uses normal costing and applies overhead on the basis of direct labour cost. The cost of goods sold before making adjustments for any overhead variance is \$856,000. Calculate the overhead variance for the year and dispose of the overhead variance by adjusting the costs of goods sold.
1
2017-02-02T13:21:12-0500
The overhead variance for the year is the difference between actual variance and estimated overhead.
So, in our case the overhead variance for the year is 770,000 - 720,000 = \$50,000.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!