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Question: Walkenhorst Company's machining department prepared its 2016 budget based on the following data:
Practical capacity 40,000 units
Machine hours per unit 2.00
Variable factory overhead $3.00 per machine hour
Fixed factory overhead $368,000
The department uses machine hours to apply factory overhead. In 2016, the department used 88,000 machine hours and $636,000 in total manufacturing overhead to manufacture 43,000 units. Actual fixed overhead for the year was $380,000.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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