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ASSUME that direct labor hours are a proper driver for the company and that the vast majority of the overhead is FIXED in nature. Does

  1. ASSUME that direct labor hours are a proper driver for the company and that the vast majority of the overhead is FIXED in nature. Does it sound like the company is effectively utilizing their fixed costs, yes or no and WHY? What dollar amount of fixed overhead, if any, is unutilized or wasted?

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