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Problem 1: Flagstaff Company has budgeted production units for July of 8,200 units. Variable factory overhead is $1.2 per unit. Budgeted fixed factory overhead is $20,500, which includes $3,300 of factory equipment depreciation. Compute the total budgeted overhead to be reported on the factory overhead budget for the month.
Multiple Choice Option 1: $27,040. Option 2: $20,500. Option 3: $25,400. Option 4: $30,340. Option 5: $9,840.
An $1,800 payment for repairs was erroneously charged to the Cost of Goods Sold account. Assume that the perpetual inventory system is used.
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Marvin's Kitchen Supply delivers restaurant supplies throughout the city.
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Demand for the company's products is very strong, with far more orders each month than the company can produce with the available raw materials.
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