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Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Standard variable manufacturing

Transcribed Image Text:Absolute systems allocate manufacturing overhead based on machine hours. Each
connector should require 9 machine hours. According to the static budget absolute
expected to incur the following:
1. 530 machine hours per month (connectors * 9 machine hours per connector).
2. $8,480 in variable manufacturing overhead costs.
3. $12,750 in fixed manufacturing overhead costs.
During August absolute actually used 490 machine hours to make 130 connectors and
spent $7,300 and variable manufacturing costs and $12,800 and fixed manufacturing
overhead costs absolute standard variable manufacturing overhead allocation rate
is
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