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Misha Larkins [42]
3 years ago
9

Fixed overhead was budgeted at $200,000, and 25,000 direct labor hours were budgeted. If the fixed overhead volume variance was

$8,000 favorable and the fixed overhead spending variance was $6,000 unfavorable, fixed overhead applied must be
Business
1 answer:
Liono4ka [1.6K]3 years ago
3 0

Answer:

$208,000

Explanation:

Calculation for fixed overhead applied

Using this formula

Fixed overhead applied =Budgeted Fixed overhead+Fixed overhead volume variance

Let plug in the formula

Fixed overhead applied =$200,000+$8,000

Fixed overhead applied=$208,000

Therefore Fixed overhead applied must be $208,000

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