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Question - The following data relates to the manufacturing activities of Sam Club Company for the first quarter of the current year:
Standard activity in (units) 30,000
Actual production (unit) 24,000
Budgeted fixed manufacturing overhead $36,000
Variable overhead rate (per unit) $4.00
Actual fixed manufacturing overhead $37,200
Actual variable manufacturing overhead $88,800
Requirement: Compute the overhead budget variance and the overhead volume variance. (Assume overhead is applied based on units produced).
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