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Question
1.The master budget of Swifty Corporation shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:
Indirect labo r$780000
Machine supplies 250000
Indirect materials 18000
Depreciation on factory building 190000
Total manufacturing overhead $1400000
A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of
2.Marigold Corp. uses flexible budgets. At normal capacity of 22000 units, budgeted manufacturing overhead is: $66000 variable and $270000 fixed. If Stone had actual overhead costs of $337200 for 24000 units produced, what is the difference between actual and budgeted costs?
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