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Question - Flexible Budget for Various Levels of Production
Budgeted amounts for the year:
Materials - 2 leather strips @ $7.00
Labor - 1.5 hr. @ $18.00
VOH - 1.5 hr. @ $1.20
FOH - $6,800
Required:
1. Prepare a flexible budget for 3,500, 4,000, and 4,500 units.
2. CONCEPTUAL CONNECTION Calculate the unit cost at 3,500, 4,000, and 4,500 units. What happens to unit cost as the number of units produced increases?
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