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Question - Faessler Corporation applies overhead to products based on machine-hours. The denominator level of activity is 6,500 machine-hours. The budgeted fixed overhead costs are $242,450. In July, the actual fixed overhead costs were $242,490 and the standard machine-hours allowed for the actual output were 7,000 machine-hours.
Required:
(a) Compute the budget variance for July. Show your work!
(b) Compute the volume variance for July. Show your work!
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