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HosePower Canada has been dedicated to providing superior quality products and services since it was established in 1976. The company specializes in the fabrication of
HosePower Canada has been dedicated to providing superior quality products and services since it was established in 1976. The company specializes in the fabrication of custom hose assemblies and kits as well as bulk distribution of hose, fittings, equipment and accessories. The following table provides data concerning the company's variable manufacturing overhead costs: ItemCost Shop supplies$0.35 per meter Supervisory wages1.65 per meter Transportation0.72 per meter The fixed manufacturing overhead consists of electricity $1,400 per month and depreciation $8,300 per month. Instructions (a) Prepare a flexible budget for the manufacturing overhead costs for the expected range of activities of 13,000 meters - 15,000 meters, using increments of 1,000 meters. (6 marks) (b) Explain to Sharon under what circumstances a static budget may be an appropriate basis for evaluating a manager's effectiveness in
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