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In: Accounting

Last year, ABC Company produced 19,000 units of Product X. The fixed overhead budget was $160,000...

Last year, ABC Company produced 19,000 units of Product X. The fixed overhead budget was $160,000 and the expected level of production for the year was 20,000 units. The actual fixed overhead costs were $162,000.

Required: Be sure to label each variance as F – favorable or U – unfavorable.

1. What is the predetermined fixed overhead rate for the year?

2. What was the fixed overhead budget or spending variance?

3. What is the fixed overhead volume variance?

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Expert Solution

ekkarill92 answered 1 year ago
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