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Three direct labor hours are required for each product unit. Planned production for the period was set at 8,000 units. Manufacturing overhead for the period is budgeted at $204,000, of which 30 percent is fixed. The 26,200 hours worked
during the period resulted in production of 8,500 units. Manufacturing overhead cost incurred was $220,500. Calculate the Overhead spending variance, overhead efficiency variance, and the overhead volume variance. Discuss the overall
meaning of your results.
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