Sir in example 6 of chap 14, when calculating total overhead variance for dispatching, the actual total cost will be actual number of dispatch multiply by actual cost per dispatch, right?
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Example 6 of chap 14
No - the actual cost is that given in the question of $126,720. That is what is actually spent.
But suppose if it would not have been given in the question then we would have calculated it by actual number of dispatch multiply by actual cost per dispatch, right?
Yes - that would be true. But it would be very surprising if the actual total cost was not given in the question :-)
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