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Simple ABC overhead variance  analysis

The following information relates to B's ordering activity during control period 2.

Budget

Output                       10,000 units

Activity level                2,000 orders Total cost of activity               $90,000

Actual

Output                       10,500 units

Activity level                1,800 orders Total cost of activity               $84,000

Required

Calculate the overhead expenditure and efficiency variances relating to the ordering activity.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91593230

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