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2. The Company plans to manufacture 20,000 fans during the current month. The normal capacity of the firm is 80,000 hours. The expected actual capacity
2. The Company plans to manufacture 20,000 fans during the current month. The normal capacity of the firm is 80,000 hours. The expected actual capacity of the company is 60,000 hours. At this capacity level variable factory overheads are estimated to be $48,000 and fixed overheads are $36,000. Actual overheads were $96,000 at 65,000 hours. Required: Calculate the pre determined overhead rate Calculate the over/under applied factory overheads Calculate the spending and idle capacity variance
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