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The loan department of Local Bank uses standard costs to determine the overhead cost of processing loan applications. During the current month a fire occurred, and the accounting records for the department were mostly destroyed. The following data were salvaged from the ashes.
Standard variable overhead rate per hour $ 9.00Standard hours per application 2Standard hours allowed 2,000Standard fixed overhead rate per hour $ 6Actual fixed overhead cost $13,200Variable overhead budget based on standard hours allowed $18,000Fixed overhead budget $13,200Overhead controllable variance $ 1,500U
A) Determine the following.1. total actual overhead cost2. actual variable overhead cost3. variable overhead cost applied4. fixed overhead cost applied5. overhead volume variance
B) Determine how many loans were processed
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