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Question - The standard factory overhead rate is $7.50 per machine hour ($6.20 for variable factory overhead and $1.30 for fixed factory overhead) based on 100% capacity of 80,000 machine hours. The standard cost and the actual cost of factory overhead for the production of 15,000 units during August were as follows:
Actual: Variable factory overhead $360,000
Fixed factory overhead 104,000
Standard: 60,000 hours at $7.50 450,000
Required - What is the amount of the fixed factory overhead volume variance?
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