What normal capacity used to determine fixed overhead rate

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Problem 1: Eastern Co. has total budgeted fixed costs of $150,000. Actual production of 39,000 units resulted in a $6,000 favorable volume variance. What normal capacity was used to determine the fixed overhead rate?

a. 33,000

b. 37,500

c. 40,560

d. Cannot be determined without further information.

Reference no: EM132803035

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