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Ivanhoe Company uses a flexible budget for manufacturing overhead that is based on direct labour hours. The variable manufacturing overhead costs per direct labour hour
Ivanhoe Company uses a flexible budget for manufacturing overhead that is based on direct labour hours. The variable manufacturing
overhead costs per direct labour hour are as follows:
Fixed overhead costs per month are as follows: supervision $; depreciation $; and property taxes $ The company
believes it will normally operate in a range of to direct labour hours per month.
Prepare a monthly flexible manufacturing overhead budget for for the expected range of activity, using increments
of direct labour hours.
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