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Question - The New York Company produces high-quality chairs. Variable manufacturing overhead is applied at a standard rate of $12 per machine hour. Each chair requires a standard quantity of six machine hours. Production for the month totaled 4,000 units. Calculate the flexible budget amount for variable overhead for the month.
a. $130,000
b. $192,000
c. $288,000
d. $100,000
Determine the selling price for the product, assuming that the company desires to earn a gross margin of $20.40 per unit.
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