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Problem - Budgeted Income Statement - Oak Creek Company is preparing its budgeted income statement for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are found in Part A above.
In addition, Oak Creek budgets 0.3 hours of direct labour per unit, labour costs at $14 per hour, and manufacturing overhead at $20 per direct labour hour. Its budgeted selling and administrative expenses for 2020 are $7 million.
Required -
a) Calculate the budgeted total unit cost.
b) Prepare the budgeted income statement for 2020.
Explain the advantages and disadvantages of at least two sampling methods. Make a recommendation for the best method to sample accounts receivables
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