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Steinhagen Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
Steinhagen Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear below:
Original Budget | Actual Costs | |||||
Variable overhead costs: | ||||||
Supplies | $ | 5,400 | $ | 6,250 | ||
Indirect labor | 4,000 | 4,550 | ||||
Fixed overhead costs: | ||||||
Supervision | 8,200 | 8,400 | ||||
Utilities | 5,800 | 5,700 | ||||
Factory depreciation | 15,800 | 16,150 | ||||
Total overhead cost | $ | 39,200 | $ | 41,050 | ||
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The company based its original budget on 2,000 machine-hours. The company actually worked 2,150 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,290 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month?
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