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The predetermined overhead rate is 6 per direct labour hour

In October, Derby Company reports 21,000 actual direct labour hours, and it incurs $115,000 of manufacturing overhead costs. Standard hours allowed for the work done is 20,000 hours. The predetermined overhead rate is $6 per direct labour hour. Compute the total overhead variance.

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Accounting Basics: The predetermined overhead rate is 6 per direct labour hour

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