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The Company planned to produce 25,000 units of product and work 100,000 direct labour hours in 2020. Manufacturing overhead at the 100,000 direct labour hours level of activity was estimated to be: Variable manufacturing overhead $ 700,000 Fixed manufacturing overhead 300,000 Total manufacturing overhead $1,000,000 At the end of 2020, 26,000 units of product were actually produced and 107,000 actual direct labour hours were worked. Total actual overhead costs for 2020 was $1,015,000, of which $295,000 was fixed manufacturing overhead.
Required
Question a) Calculate the total overhead variance.
Question b) Calculate the variable overhead budget variance.
Question c) Calculate the fixed overhead volume variance.
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