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A gas giant uses a standard cost system for each of its refineries. For one refinery, the monthly fixed overhead budget is $8,400,000 for a
A gas giant uses a standard cost system for each of its refineries. For one refinery, the monthly fixed overhead budget is $8,400,000 for a planned outputs of 5,000,000 barrels. For January, the actual fixed cost was $8,850,000 for 5,100,000 barrels.
a. Determine the fixed overhead budget variance and if it is favorable or unfavorable.
$_____
b. If fixed overhead is applied on a per-barrel basis, determine the volume variance and if it is favorable or unfavorable.
$____
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