ABC Manufacturing budgets $25 per unit for variable manufacturing overhead and $50,000 per month for fixed manufacturing
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Question:
ABC Manufacturing budgets $25 per unit for variable manufacturing overhead and $50,000 per month for fixed manufacturing overhead. During May, the company produced 4,000 units and incurred actual variable overhead costs of $80,000 and actual fixed overhead costs of $40,000. Calculate the total overhead variance and break it down into variable and fixed overhead variances.
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