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At Overland Company, maintenance cost is exclusively a variable cost that varies directly with machine hours

Accounting

At Overland Company, maintenance cost is exclusively a variable cost that varies directly with machine hours. The performance report for July showed that total actual maintenance costs were $9,800 and that the associated spending variance was $200 unfavourable. If 8,000 machine hours were actually worked during July, what was the budgeted maintenance cost per machine hour?

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