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Amy Corporation uses a standard costing system and applies its fixed manufacturing overhead (FMO) costs to products based on the number of machine hours. Last
Amy Corporation uses a standard costing system and applies its fixed manufacturing overhead (FMO) costs to products based on the number of machine hours. Last year Amy incurred a total actual FMO $53,000 when produced 12,000 units. The FMO was over-applied by $7,000. When analyzing the cost variances, the chief accountant determined that there was a favorable $4,730 FMO production volume variance.
What was Amy's budgeted production level in units for the past year?
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