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Question - Frank Company's budgeted overhead for 2008 was $360,000 for FIXED overhead ($30,000 a month) and variable overhead at $5.00 per unit. Planned production was 120,000 units for the year at the rate of 10,000 units a month. During July the company produced 9,600 units and total overhead was $87,000.
A) What was the amount of overhead (expected) in the flexible budget for July?
B) What was the Controllable Overhead Variance for July? (HELP: Fixed is not considered controllable).
C) What was the overhead volume Variance? Be sure to indicate if Favorable or Unfavorable.
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