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We are exclusive providers of accessories for computers and tablets. Assume that the cost driver - cost driver - used as the basis for allocating
We are exclusive providers of accessories for computers and tablets. Assume that the cost driver - cost driver - used as the basis for allocating manufacturing indirect costs is DLH - direct labor hours. Below are the projections for the period: Standard variable manufacturing overhead (VMO): $ 100 per hour (DLH) Standard Fixed Manufacturing Overhead (FMO): $ 120 per hour (DLH) Standard working hours required per accessory unit: 1.5 hours Production forecast at master budget level: 10,000 fixtures Manufacturing Fixed Indirect Cost Standard (FMO): This information is not provided but does not preclude answering what the problem asks for Current results: Accessory units produced and sold 9,600 Hours of labor worked: 16,800 Variable indirect costs incurred (VMO): $1,478,400 Fixed indirect costs incurred (FMO): $ 1,832,200 How much is the manufacturing fixed overhead cost (FMO) budget! variance? to. $ 32,200 Favorable b. $ 104,200 Infavorable c. $ 32,200 Invaluable d. $ 104,200 Favorable
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