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At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30000. At 10000 direct labor
At zero direct labor hours in a flexible budget graph, the total budgeted cost line intersects the vertical axis at $30000. At 10000 direct labor hours, a horizontal line drawn from the total budgeted cost line intersects the vertical axis at $150000. Fixed and variable costs may be expressed as: $120000 fixed plus $3 per direct labor hour variable. $120000 fixed plus $12 per direct labor hour variable. $30000 fixed plus $12 per direct labor hour variable $30000 fixed plus $15 per direct labor hour variable. Click if you would like to Show Work for this questioni Open Show Work The predetermined overhead rate for Bonita Industries is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $7696 variable and $4680 fixed, and 1300 units were produced. The direct labor standard is 2 hours per unit produced. The total overhead variance is $1560 F $624 U. $1560 U. $624 F Click if you would like to Show Work for this questioni Open Show Work
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