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Maxima Corp. uses a standard cost system with machine-hours as the activity base for both variable and fixed manufacturing overhead (VMOH & FMOH). The following
Maxima Corp. uses a standard cost system with machine-hours as the activity base for both variable and fixed manufacturing overhead (VMOH & FMOH). The following Information relates to production for last year: Fixed Variable $14,000 Total budgeted overhead (at the denominator level of activity) Total applied overhead Total actual overhead $15,400 $15,700 $28,600 $31,800 The actual machine-hours Incurred were 2,300. VMOH Efficiency Variance was $700 Unfavorable. What was Maxima's FMOH Volume Variance? Multiple Choice O $5.800 Unfavorable O $5.800 Favorable o $2.600 Unfavorable O All of the other answers are incorrect. O $2.600 Favorable
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