Understanding Relationships between Overhead Variances, Budgeted
Amounts, and Actual Units Produced and Direct Labor Hours Worked
Last year, Gladner Company had planned to produce 144,500 units.
However, 145,945 units were actually produced. The company uses
direct labor hours to assign overhead to products. Each unit
requires 0.9 standard hour of labor for completion. The fixed
overhead rate was $11 per direct labor hour and the variable
overhead rate was $6.36 per direct labor hour.
The following variances were computed: Fixed...