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Assume that the best cost driver that Sony had for variable factory overhead in the assembly department is machine hours. During April, the company budgeted 480,000 machine hours and $5,000,000 for its Texas plant's assembly department. The actual vehicle overhead incurred was $5,200,000 which was related to 500,000 machine hours.

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a. determine the variable overhead spending variance
b. determine the variable overhead effectiveness variance

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9978171

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