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Question - Bongo Company had planned to produce 110,000 units of widgets, however it actually produced 116,000. The Company uses machine hours to assign overhead to products. Each unit requires 0.7 standard machine. The fixed overhead rate is $15 per machine hour and the variable overhead rate is 7 per direct labour hour.
Required -
1. Using the spending variance calculate the actual fixed overhead.
2. Calculate the total allocated variable overhead.
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