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Roger Company Planned to Produce 12,000 Units

Question 87

Multiple Choice

Roger Company planned to produce 12,000 units.Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour.Actual sales were 14,000 units requiring 20,000 machine hours.Actual processing cost was $222,000._____ is the activity-level variance for processing.


A) $39,000 favorable
B) $39,000 unfavorable
C) $42,000 favorable
D) $42,000 unfavorable

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