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Zhou, Incorporated is planning its overhead costs for an upcoming period when 91,000 machine hours are expected to be worked. Activity may drop as low

Zhou, Incorporated is planning its overhead costs for an upcoming period when 91,000 machine hours are expected to be worked. Activity may drop as low as 84,000 hours if some overdue equipment maintenance procedures are performed; on the other hand, activity could jump to 100,000 hours if one of Zhou's major competitors likely goes bankrupt. A flexible overhead budget would best be based on

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