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Houston Corporation considers materials and labor to be completely variable costs. Expected production for the year is 50,000 units. At that level of production, direct
Houston Corporation considers materials and labor to be completely variable costs. Expected production for the year is 50,000 units.
At that level of production, direct materials cost is budgeted at $198,000, and direct labor cost is budgeted at $450,000. Prepare a flexible budget for materials and labor for possible production levels of 52,500, 60,000, and 67,500 units of product.
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