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Question: Flexible Budgeting Quarterly budgeted overhead costs for two different levels of activity follow. The 2,000 level was the expected level from the master budget.
The actual activity level was 1,700 hours.
Required: 1. Prepare a flexible budget for an activity level of 1,700 direct labor hours.
2. Suppose that all of the formulas for each item are missing. You only have the budgeted costs for each level of activity. Show how you can obtain the formulas for each item by using the information given for the budgeted costs for the two levels.
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