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The overhead application rate for a company is 10$ per unit, made up of $6 per unit fixed overhead and 4$ per unit of variable
The overhead application rate for a company is 10$ per unit, made up of $6 per unit fixed overhead and 4$ per unit of variable overhead. Normal capacity is 10000 units. In one month there was a favorable flexible budgeted variance of 2500$. Actual overhead for the month was 110.000$ and actual units produced were 13125. Determine the amount of the budgeted overhead for the actual level of production.
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