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Fixed overheads, variance analysis in the service sector

Business

Fixed overheads, variance analysis in the service sector. Base Accountancy is an audit and consultancy firm that operates in New Queensland, Australia. The followings relate to its operation in August 2020. Required Standard time per unit Budgeted output Budgeted variable overhead Actual output Actual hours worked Actual variable overhead 4 hours 1,000 units A$3,000 900 units 1,700 hours A$2,680 Calculate the variable overhead cost variance, dividing the same into expenditure variance and efficiency variance.

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