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Question - Assume the following:
The variable portion of the predetermined overhead rate is $1.50 per direct labor-hour.
The standard labor-hours allowed per unit of finished goods is 3 hours.
The actual quantity of labor hours worked during the period was 43,950 hours.
The total actual variable manufacturing overhead cost for the period was $63,000.
The company produced 15,000 units of finished goods during the period.
Required - What is the variable overhead rate variance?
How might the manager improve income without increasing sales, if variable cost per unit and total fixed costs cannot be changed?
Explain the value chain concept and discuss two (2) ways the value chain concept benefits organisations - Draw the value chain model for the company
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