Question: Maxima Corp. uses a standard cost system with machine-hours as the activity base for both variable and fixed manufacturing overhead (VMOH & FMOH). The following

 Maxima Corp. uses a standard cost system with machine-hours as the

Maxima Corp. uses a standard cost system with machine-hours as the activity base for both variable and fixed manufacturing overhead (VMOH & FMOH). The following information relates to production for last year: Fixed Variable $14,000 Total budgeted overhead (at the denominator level of activity) Total applied overhead Total actual overhead $15,400 $15,800 $35,200 $31,800 The actual machine-hours incurred were 2,300. VMOH Efficiency Variance was $700 Unfavorable. What was Maxima's FMOH Volume Variance

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