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The standard fixed factory overhead rate is based on 100

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The standard fixed factory overhead rate is based on 100% capacity of 120,000 machine hours for Thompson Inc. The standard costs and the actual costs of factory overhead for the production of 25,000 units during March were as follows:

  • Actual: Factory overhead $950,000
  • Standard: 100,000 hours at $9.00 900,000

If there was a $60,000 unfavorable volume variance for March, what is the standard fixed factory overhead cost rate?

Reference no: EM13601945

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