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Question 1: Meridian Fashions uses standard costs for their manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead cost variance.
Actual fixed overhead $30,000Budgeted fixed overhead $20,000Standard overhead allocation rate $9Standard direct labor hours per unit. 2 DHLrActual output 2,500 unitsOption A. $10,000 F
Option B. $25,000 U
Option C. $25,000 F
Option D. $10,000 U
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