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The following information is for the third quarter of this year:
Planned
Actual
Production
92,000 units
87,000 units
Direct labor hours
506,800 DL hrs
380,000 DL hrs
Fixed manufacturing overhead
$205,000
$182,400
Variable manufacturing overhead
$910,000
$841,500
Standard direct labor hour per unit
5.5
Calculate the following three overhead variances.
a. Overhead volume variance
b. Overhead efficiency variance
c. Overhead spending variance
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What do you mean by base case NPV?
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