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Earth Company expects to operate at 65% of its productive capacity of 46,000 units per month. At this planned level, the company expects to use 23,000 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate based on direct labor hours. At the 65% capacity level, the total budgeted cost includes $36,800 fixed overhead cost and $264,500 variable overhead cost. In the current month, the company incurred $315,000 actual overhead and 29,029 actual labor hours while producing 37,700 units. Compute its total overhead variance.
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George Company sells one product at a price of $20 per unit. Variable expenses are 60 percent of sales, and fixed expenses are $20,000. The amount of sales required to break even is:
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