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Barret Hospital is interested in analyzing overhead related to laundry services. The hospital administrator estimated that monthly fixed costs would be $80,000 and variable costs would be $3.00 per patient day. During the month of September, the hospital had 18,000 patient days. Total laundry costs were $136,000.
Required:
Analyze laundry costs for the month of September using the procedures for calculating a controllable overhead variance, Is the variance favorable or unfavorable?
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