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Question 2 Radial Car Components Berhad...

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Accounting

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Question 2 Radial Car Components Berhad has suffered severe losses over the past year. This situation has arisen partially because of bad industrial relations and poor management control. An extract from the standard cost system report relating to the first 3-month period reveals: Budgeted fixed overhead $800,000 800,000 units 15 minutes 192,000 hours 720,000 units $804,000 Budgeted output Standard time per unit Actual hours worked Actual output Actual fixed overhead Required: (a) Calculate the following fixed overhead variances: i) fixed overhead expenditure variance | (ii) fixed overhead efficiency variance (iii) fixed overhead capacity variance AH)-bH) SR (iv) fixed overhead volume variance 2 (12 marks)

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