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Find the fixed factory overhead volume variance

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Problem - Applegate Company has a normal budgeted capacity of 200 machine hours. Applegate produced 600 units. Each unit requires a standard 0.2 machine hour to complete. The standard fixed factory overhead is $12 per hour, determined at normal capacity. Find the fixed factory overhead volume variance?

a. $4,800 unfavorable.

b. $4,800 favorable.

c. $960 favorable.

d. $960 unfavorable.

Reference no: EM132716755

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