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QUESTION 10 Jordan Company produces basketballs and uses a standard costing system. Budgeted fixed overhead was $300,000. Ren
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Answer #1
Conputation Of Standard Rate Of Fixed Overhead Per Hour
= Budgeted Fixed Overhead / Budgeted DLH
=$300000/1000000 DLH
=0.30 per DLH
Fixed overhead volume variance = Standard overhead - Budgeted overhead
= (1296000 Basket balls * 1 DLH/ basket ball *$0.30 per DLH) - $300000
=$388800 -$300000
=$88,800 (F)(O)
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