(Solved by Humans)-Zeta, Inc., produces handwoven rugs. Budgeted production is 5,000 rugs per month and the standard di
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Zeta, Inc., produces handwoven rugs. Budgeted production is 5,000 rugs per month and the standard direct labor required to make each rug is 2 hours. All overhead is allocated based on direct labor hours. Zeta's manager is interested in what caused the recent month's $3,000 unfavorable overhead variance. The following information was available to aid in the analysis: Budgeted amounts Actual Results Production in units 5,000 4,500 Total labor hours 10,000 9,000 Total variable overhead $ 60,000 $ 55,000 Total fixed overhead 40,000 38,000 Total overhead $ 100,000 $ 93,000 a. What was the overhead spending variance for the month? b. What was the overhead volume variance?
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This question was answered on: 10 May, 2025
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