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this is one question Ikon Equipment produces exercise equipment. The following schedule reveals anticipated monthly production of bicycles for the first three months of the
this is one question
Ikon Equipment produces exercise equipment. The following schedule reveals anticipated monthly production of bicycles for the first three months of the year: January 6,000 February 7,000 March 8,000 Ikon budgets for four direct labor hours per bicycle, at an average cost of $17.00 per hour. Variable factory overhead is applied at the rate of $10.25 per direct labor hour. Fixed overhead is expected to run $110,000 per month, which includes $10,000 per month of noncash expenses related to depreciation. Determine the expected cash outflow for direct labor in February $28.000 Ikon budgets for four direct labor hours per bicycle, at an average cost of $17.00 per hour. Variable factory overhead is applied at the rate of $10.25 per direct labor hour. Fixed overhead is expected to run $110,000 per month, which includes $10,000 per month of noncash expenses related to depreciation. Determine the expected cash outflow for direct labor in February $28,000 $7,000 $476,000 $32,000 Step by Step Solution
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