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Accounting
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Assume company produces only one type of product. Also assume that fixed overhead consists of only one item, 'factory rent'. Budgeted rent: $100,000; Estimated production, 10,000 units. Actual production in period: 7,000. Actual factory rent: $94,000. The fixed overhead 'budget' variance is: $6,000 favourable $6,000 unfavourable $30,000 favourable $30,000 unfavourable
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