The NBV Company allocates both variable manufacturing overhead and fixed manufacturing overhead using direct labor hours as the allocation base. NBV expected to produce 40,000 units during the year and to use three direct labor hours to produce each unit. It budgeted $600,000 for variable manufacturing overhead and $1,200,000 for fixed manufacturing overhead. NBV actually produced 35,000 units and used 115,000 direct labor hours during the year. If NBV incurred $650,000 in variable manufacturing overhead costs and $950,000 in fixed manufacturing overhead costs, what is the variable manufacturing overhead spending variance? $75,000 favorable $50,000 unfavorable $50,000 favorable O $75,000 unfavorable

The NBV Company allocates both variable manufacturing overhead and fixed manufacturing overhead using direct labor hours as the allocation base. NBV expected to produce 40,000 units during the year and to use three direct labor hours to produce each unit. It budgeted $600,000 for variable manufacturing overhead and $1,200,000 for fixed manufacturing overhead. NBV actually produced 35,000 units and used 115,000 direct labor hours during the year. If NBV incurred $650,000 in variable manufacturing overhead costs and $950,000 in fixed manufacturing overhead costs, what is the variable manufacturing overhead spending variance? $75,000 favorable $50,000 unfavorable $50,000 favorable O $75,000 unfavorable

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Description: The NBV Company allocates both variable manufacturing overhead and fixed manufacturingoverhead using direct labor hours as the allocation base. NBV expected to produce 40,000 unitsduring the year and to use three direct labor hours to produce each u

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 4CMA: JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT...

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