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    Starlight Glassware Company

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    * Attached picture is a scan of the full problem. I am looking for direction as to how to complete this problem. I am not very good with managerial accounting.

    Starlight Glassware Company has the following standards and flexible-budget data.

    Standard variable-overhead rate $18.00 per direct-labor hour
    Standard quantity of direct labor 2 hours per unit of output
    Budgeted fixed overhead $300,000
    Budgeted output 25,000 units

    Actual results for February are as follows:
    Actual output 20,000 units
    Actual variable overhead $960,000
    Actual fixed overhead $291,000
    Actual direct labor 50,000 hours

    Required: Use the variance formulas to compute the following variances. Indicate whether each variance is favorable or unfavorable, where appropriate.

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    Starlight Glassware Company has the following standards and flexible-budget data.

    Standard variable-overhead rate $18.00 per direct-labor hour
    Standard quantity of direct labor 2 hours per unit of output
    Budgeted fixed overhead $300,000
    Budgeted output 25,000 units

    Actual results for February are as follows:
    Actual output 20,000 units
    Actual variable overhead $960,000
    Actual fixed ...

    Solution Summary

    This solution is comprised of a detailed explanation to use the variance formulas to compute the following variances.

    $2.19

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