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Megan,Inc.uses the following standard costs per unit for one of its products: Direct labor (2 hrs @ $5/hr) = $10;overhead (2 hrs @ $2.50/hr) = $5.The flexible budget for overhead is $120,000 plus $1 per direct labor hour (DLH) .Actual data for the month show total overhead costs of $225,000,total fixed overhead of $123,000,85,000 hours worked,and 40,000 units produced.The overhead production-volume variance is:
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