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Question - The following overhead data are for a department of a large company.
Actual costs Static Incurred budget
Activity level (in units) 800 750
Variable costs:
Indirect materials $6,850 $6,600
Electricity $1,312 $1,275
Fixed costs:
Administration $3,570 $3,700
Rent $3,320 $3,200
Required: Construct a flexible budget performance report that would be useful in assessing how well costs were controlled in this department.
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