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At Eady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for July showed that actual maintenance costs totaled
At Eady Corporation, maintenance is a variable overhead cost that is based on machine-hours. The performance report for July showed that actual maintenance costs totaled $12,550 and that the associated rate variance was $390 unfavorable. If 6,400 machine-hours were actually worked during July, the standard maintenance cost per machine-hour was:
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