Sharon Plc allocates manufacturing overhead costs to the product on the basis of direct labour...
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Sharon Plc allocates manufacturing overhead costs to the product on the basis of direct labour hours. For March 2021, the company budgeted to spend 40.000 direct labour hours (denominator hours) to produce 100,000 units; however, the company managed to produce 90,000 units using 38,000 direct labour hours. The fixed overhead volume variance was 60,000 unfavourable. How much would be the budgeted overhead cost based on the denominator hours
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