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Question - Harold Hill Corp., a manufacturer of musical instruments, uses a budgeted factory overhead rate to apply overhead to production. The following data is available for 2007:
Item & Amount
Budgeted Factory Overhead $675,000
Budgeted Machine Hours 20,000
Actual direct labor cost $482,000
Budgeted direct labor cost $450,000
If the company uses estimated direct labor costs as its activity base, calculate the overhead application rate.
Calculate the time variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number
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