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Question - Wicks Company has established a flexible budget for manufacturing overhead based on direct labour-hours. Budgeted costs at 100,000 direct labour-hours are as follows:
Variable costs (total):
Packing supplies R70,000
Indirect labour R90,000
Fixed costs (total):
Utilities R50,000
Rent R20,000
Insurance R10,000
Required - Find the flexible budget for factory overhead would show that the variable overhead per direct labour-hour?
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