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What is the budgeted level of activity

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Question - A department has budgeted monthly fixed manufacturing overhead cost of $35000 plus $4 per direct labour hour. The flexible budget report reflects $110000 for total budgeted manufacturing cost for the month. What is the budgeted level of activity to be achieved during the month?

a. 36250 direct labour hours

b. 27500 direct labour hours

c. 18750 direct labour hours

d. cannot be determined

Reference no: EM132855055

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