At the beginning of last year, Diekow Productions set variable overhead standards of 10 machine hours at
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At the beginning of last year, Diekow Productions set variable overhead standards of 10 machine hours at a rate of $ 10 per hour for each product produced. During the year, 10,800 machine hours were used at a cost of $10.20 per hour. Using this information and the applicable information in E 6, calculate Diekow production’s variable overhead spending and efficiency variances for the year.
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