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Elgin Company's budgeted fixed factory overhead costs are $50,000 per month plus a variable factory overhead rate of $4.00 per direct labor hour. The standard
Elgin Company's budgeted fixed factory overhead costs are $50,000 per month plus a variable factory overhead rate of $4.00 per direct labor hour. The standard direct labor hours allowed for October production were 20,000. An analysis of the factory overhead indicates that in October, Elgin had an unfavorable flexible-budget variance of $1,500 and a favorable production-volume variance of $500. Elgin uses a two-variance analysis of overhead variances.
The applied factory overhead in October is:
a. | $129,500. |
b. | $128,000. |
c. | $130,000. |
d. | $130,500. |
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