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Donna's Manufacturing Company makes face masks. The current year operating budget is based on production of 20,000 masks with 0.5 machine-hour allowed per mask.
Variable manufacturing overhead is anticipated to be $220,000.
Actual production was 18,000 masks using 9,500 machine-hours.
Actual variable overhead costs were $20 per machine-hour.
Problem 1: Calculate the variable overhead rate and efficiency variances
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