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Two Little Chipmunks, Inc. produces a single product and uses a standard costing system applying manufacturing overhead based on standard machine-hours allowed for actual output

Two Little Chipmunks, Inc. produces a single product and uses a standard costing system applying manufacturing overhead based on standard machine-hours allowed for actual output At the end of the year, the company reported results below for fixed manufacturing overhead (FMOH) FMOH budget variance FMOH volume variance $1,038 Favorable $2,013 Unfavorable Which of the following statements is true regarding FMOH

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