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Question
Lossing Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
Original BudgetActual CostsVariable overhead costs: Supplies$5,800 $5,990 Indirect labor 10,520 9,870 Fixed overhead costs: Supervision 13,610 14,290 Utilities 12,900 12,950 Factory depreciation 54,320 53,590 Total overhead cost$97,150 $96,690
The company based its original budget on 5,900 machine-hours. The company actually worked 5,860 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 5,790 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?
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Which of the following statements about the Miller model of capital structure is false?
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