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The company also established the following cost formulas for its selling expenses: The planning budget for March was based on producing and selling 15,000 units.
The company also established the following cost formulas for its selling expenses: The planning budget for March was based on producing and selling 15,000 units. However, during March the company actually produced and sold 17,000 units and incurred the following costs: a. Purchased 170,000 pounds of raw materials at a cost of $8.00 per pound. All of this material was used in production. b. Direct-laborers worked 64,000 hours at a rate of $14.00 per hour. c. Total variable manufacturing overhead for the month was $513,920. d. Total advertising, sales salaries and commissions, and shipping expenses were $300,000, $500,000, and $205,000, respectively. 12. What amounts of advertising, sales salaries and commissions, and shipping expenses would be included in the company's flexible budget for March
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