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Machine maintenance is a variable cost of your business. You have standards of 5 minutes of machine time per unit produced and $20 of maintenance
Machine maintenance is a variable cost of your business. You have standards of 5 minutes of machine time per unit produced and $20 of maintenance cost per hour of machine usage. Your actual amounts are 2866 hours of machine time and $56176 in maintenance cost. You produce 33630 units whereas your budget had anticipated volume of 20,000
1) Provide the maintenance efficiency variance (absolute value)
2) Provide the maintenance price variance
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