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Snorlax Corporation’s flexible budget performance report for last month shows that actual indirect materials cost, a variable cost, was $31,178, and that the spending variance for indirect materials cost was $2,261 unfavorable. The company uses machine hours as its base for assigning manufacturing overhead. During that month, the company worked 11,900 machine‐hours. Budgeted activity for the month had been 12,200 machine‐hours. The standard rate per machine‐hour for indirect materials cost must have been closest to:
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