Overhead variance relationships The Jorgesson Manufacturing Company applies over- head at $9 per standard machine hour. Variable
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Overhead variance relationships The Jorgesson Manufacturing Company applies over- head at $9 per standard machine hour. Variable overhead accounts for $2 of the overhead rate. The budgeted activity level is 20,000 machine hours. The company uses the three-variance method to analyze overhead variances. For the year just ended, the overhead variances are:
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