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Required assistance calculating fixed overhead budget and volume variance:
The Stanford Company uses a standard cost system for and applies overhead based on machine hours. The following information is available for June:
Standard:Machine hours (MH) per unit...........2Fixed overhead rate per MH.......$5.00Budgeted fixed overhead........$25,000
Actual:Machine hours................4,800Fixed overhead............$26,500Units produced................2,625
Required:
Calculate the fixed overhead budget variance and volume variance for the month of June.
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