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Hi All,
I am having a mental block. In chapter 7 of standard costing & variance analysis (illustration 2) the following has been detailed:
direct materials: 81kg x $7 per kg = $67 per unit
direct labour: 97 hours x $8 per hour = $776 per unit
variable overhead: 97 hours x $3 per hour = $291 per unitas I said, mental block going on here, but how did they calculate that their variable overhead was $3 per hour?
Many thanks in advance!!
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