The overhead application rate for a company is $2.50 per unit, made up of $1.00 for fixed
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The overhead application rate for a company is $2.50 per unit, made up of $1.00 for fixed overhead and $1.50 for variable overhead. Normal capacity is 10,000 units. In one month, there was an unfavorable controllable variance of $200. Actual overhead for the month was $27,000. What was the amount of the budgeted overhead for the actual level of production?
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