Question: Engineering Associates billed clients for 10 000 hours of engineering work
Engineering Associates billed clients for 10,000 hours of engineering work for the month. Actual fixed overhead costs for the month were $1,450,000. At the beginning of the year, a fixed overhead standard of $140 per engineering hour had been developed based on a budget of 10,500 engineering hours each month. Calculate the company’s fixed overhead budget and volume variances for the month.
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