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Budgeted production (in units) Budgeted machine-hours or denominator activity Actual production Standard hours allowed for the actual output Budgeted fixed manufacturing overhead Actual fixed


Budgeted production (in units) Budgeted machine-hours or denominator activity Actual production Standard hours allowed for the actual output Budgeted fixed manufacturing overhead Actual fixed manufacturing overhead 1,200 6,000 1,500 7,500 $ 21,000 $ 22,000 Assume that machine-hours is used as the overhead allocation base. What is the fixed component of the rate?

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