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Family Fashions uses standard costs for its manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the

Family Fashions uses standard costs for its manufacturing division. The allocation base for overhead costs is direct labor hours. From the following data, calculate the fixed overhead volume variance.

Actual fixed overhead

$40,000

Budgeted fixed overhead

$21,000

Standard overhead allocation rate

$8

Standard direct labor hours per unit

4 DLHr

Actual output

2,100 units

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