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What normal capacity used to determine fixed overhead rate

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Problem 1: Eastern Co. has total budgeted fixed costs of $150,000. Actual production of 39,000 units resulted in a $6,000 favorable volume variance. What normal capacity was used to determine the fixed overhead rate?

Option a. 33,000

Option b. 37,500

Option c. 40,560

Option d. Cannot be determined without further information.

Reference no: EM132662442

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