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Fabric Company manufactures pillows. For 2020, the company expects fixed overhead costs of $176,000. Fabric uses machine-hours to allocate fixed overhead costs and anticipates 5,500
Fabric Company manufactures pillows. For 2020, the company expects fixed overhead costs of $176,000. Fabric uses machine-hours to allocate fixed overhead costs and anticipates 5,500 hours during the year to manufacture 22,000 pillows. During 2020, Fabric manufactured 19,800 pillows and spent $172,500 on fixed overhead costs. Calculate the following: a. The fixed overhead rate for 2020 b. The fixed overhead spending variance for 2020 c. The production-volume variance for 2020 a. Calculate the fixed overhead rate for 2020. Fixed overhead rate per hour for 2020 b. Calculate the fixed overhead spending variance for 2020. (Complete all input fields.) Fixed overhead spending variance Favorable or Amount Unfavorable? c. Calculate the production-volume variance for 2020. (Complete all input fields.) Production-volume variance Favorable or Amount Unfavorable
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