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Rich Company, which uses a standard cost system, budgeted $800,000 of fixed overhead when 50,000 machine hours were anticipated. Other data for the period were:

Actual units produced:10,600
Actual machine hours worked:51,800
Actual variable overhead incurred:$ 475,000
Actual fixed overhead incurred: $ 790,100
Standard variable overhead rate per machine hour: $8.50
Standard production time per unit: 5 hours

1. What is Rich's variable overhead efficiency?

2. What is Rich's fixed overhead budget variance?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M9431209

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