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From the following information for Alfred Industries compute the overhead spending variance and the volume variance:
Standard manufacturing overhead based on normal monthly volume:
Fixed ($300,000 divided 20,000 units)............................................ $15.00
Variable ($100,000 divided 20,000 units)......................................... 5.00 $20.00
Units actually produced in current month.......................................... 18,000 units
Actual overhead costs incurred (including $300,000 fixed)............... $383,800
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