Cullumber Company produces one product, a putter called GO-Putter. Cullumber uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 100,000 units per year. The total budgeted overhead at normal capacity is $850,000 comprised of $300,000 of variable costs and $550,000 of fixed costs. Cullumber applies overhead on the basis of direct labor hours.
During the current year, Cullumber produced 81,800 putters, worked 97,800 direct labor hours, and incurred variable overhead costs of $273,825 and fixed overhead costs of $442,300.
a. Compute the applied overhead for Byrd for the year
b. Compute the total overhead variance.
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Ответ:
b. a savings account earns interest
Explanation:
A savings account is a bank account that pays small interests and allows you to deposit, manage and withdraw your money when needed. This account is a good option to put your money instead of having it under the mattress as the interests it pays will allow you not to lose the value of your money due to the inflation. Because of this, a good reason to place your money into a savings account is that it earns interest.