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Question - Company bases its budget on machine-hours. The company's static planning budget for November appears below:
Budgeted number of machine hours -- 9500
Budgeted variable costs:
Supplier 3.70 per machine hours -- $35150
Power 2.40 per machine hour -- 22800
Budgeted fixed costs:
Salaries -- 46550
Equipment Depreciation -- 31350
Total Cost 135,850
Prepare a flexible budget for 9800 machine hours per month.
What makes a contribution income statement unique? Discuss how a contribution income statement could be used to improve planning in a company.
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There were no other pension related costs. The journal entry to record the annual pension costs will include a debit to pension expense for:
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