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PROBLEM 9-1 Avocado Company provided information on the following three overhead activities. Activity Driver Fixed Cost Variable Rate Engineering Engineering Hours $97,000 $122.55 Setup $75,250
PROBLEM 9-1 Avocado Company provided information on the following three overhead activities. Activity Driver Fixed Cost Variable Rate Engineering Engineering Hours $97,000 $122.55 Setup $75,250 $130.40 Setup Hours Receiving Orders Receiving $122,500 $85.75 Avocado Company has found that the following driver levels are associated with two different levels of production: Driver 150,000 units 175,000 units Engineering Hours 315 370 Setup Hours 72 84 Receiving Orders 125 147 Required: Prepare an activity-based flexible budget for the two levels of activities for Avocado Company
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