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Different management levels in Wates, Inc., require varying degrees of managerial accounting information. Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month.
The information for the September overhead expenditures is as follows:
Budgeted output units3,000unitsBudgeted fixed manufacturing overhead$21,000Budgeted variable manufacturing overhead $5 per direct labor hourBudgeted direct manufacturing labor hours 2 hours per unitFixed manufacturing costs incurred $26,000Direct manufacturing labor hours used 7,200Variable manufacturing costs incurred $35,600Actual units manufactured 3,400
Required:
Problem 1: Compute all of the Fixed OH variances
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