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Sagot :
Answer:
5,250 hours
Explanation:
Given the above information, we will get the standard hours allowed for January production through the computation of variable overhead rate variance and variable overhead efficiency variance
Variable overhead rate variance
= (AH × AR) - (AH × SR)
$600 F = $25,500 - (5,800 hours × SR)
-$600 = $25,500 - (5,800 hours × SR)
5,800 hours × SR = $25,500 + $600
5,800 hours × SR = $26,100
SR = $26,100 / 5,800 hours
SR = $4.5 per hour
Also,
Variable overhead efficiency variance
= (AH - SH) × SR
$2,475 U= (5,800 hours - SH) × $4.50 per hour
$2,475 = (5,800 hours - SH) × $4.50 per hour
5,800 hours - SH = $2,475 ÷ $4.50 per hour
5,800 hours - SH = 550 hours
SH = 5,800 hours - 550 hours
SH = 5,250 hours
Therefore, the standard hours allowed for January production is 5,250 hours
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