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Franklin Company established a predetermined fixed overhead cost rate of $36 per unit of product. The company planned to make 7,700 units of product but
Franklin Company established a predetermined fixed overhead cost rate of $36 per unit of product. The company planned to make 7,700 units of product but actually produced only 7,400 units. Actual fixed overhead costs were $286,100.
Required
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Determine the fixed cost spending variance and indicate whether it is favorable (F) or unfavorable (U).
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Determine the fixed cost volume variance and indicate whether it is favorable (F) or unfavorable (U)
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