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Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two

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Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor-hours. Each unit requires two standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 200,000 units. Total overhead was budgeted at $900,000 for the year, and the fixed manufacturing overhead rate was $1.50 per direct labor-hour. The actual data pertaining to the manufacturing overhead for the year are presented below: Actual production Actual direct labor-hours...... Actual variable manufacturing overhead..... Actual fixed manufacturing overhead........... 198,000 units 440,000 direct labor-hours $352,000 $575,000 11. Franklin's Production volume variance for the year is: A. $6,000 unfavorable B. $19,000 favorable C. $25,000 favorable D. $55,000 unfavorable

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