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    Variable overhead spending variance - Dagle Corporation

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    Question 1:
    Dagle Corporation has provided the following data for a recent month:

    Budgeted production 4,700 motors
    Actual production 5,100 motors
    Standard machine-hours per motor 6 machine-hours
    Budgeted machine-hours (6 × 4,700) 28,200 machine-hours
    Standard machine-hours allowed for the actual output (6 × 5,100) 30,600 machine-hours
    Actual machine-hours 24,690 machine-hours

    Budgeted variable overhead cost per machine-hour:

    Indirect labor $5.6 per machine-hour
    Power $2.2 per machine-hour
    Actual total variable overhead costs:
    Indirect labor $151,406
    Power $56,300

    The variable overhead spending variance for power is:

    $3,697 F
    $3,697 U
    $28,200 U
    $1,982 U

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    https://brainmass.com/business/accounting/variable-overhead-spending-variance-dagle-corporation-209253

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    Variable overhead spending variance = Actual variable overhead - (Actual ...

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    The solution explains how to calculate the variable overhead spending variance

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