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Lemmiwinks Industries has a standard cost system in which it applied overhead on the basis of direct labor hours. It expected to have 40,000 direct labor hours for the year (denominator hours). It had the following data additional.
Expected overhead costsVariable Manufacturing Overhead Costs: $70,000Fixed Manufacturing Overhead Cost: $130,000
Operating Results for ActivityActual Direct Labor hours: 45,000Standard Direct Labor Hours: 48,000
Operating Results for CostActual variable manufacturing overhead incurred: $101,250Actual fixed manufacturing overhead costs incurred: $150,000
What is the fixed overhead budget variance?The answer is: $20,000 U, but how do you get this?
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In 2002, Gordon purchased real estate for $900,000 and listed title to the property as "Gordon and Fawn,joint tenants with right of surviorship." Gordon predeceases Fawn in 2009 when the real estate is worth $2.9 million. Gordon and Fawn are husba..
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