In the Crane Company, indirect labor is budgeted for $81,000, and factory supervision is budgeted for $36,000 at a normal capacity of 120,000 direct labor hours. If 140,000 direct labor hours are worked, the flexible budget total for these costs is: a. $136,500 b. $123,000 c. $130,500 d. $117,000

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 14E: Calculating factory overhead The normal capacity of a factory is 10,000 units per month. Cost and...
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In the Crane Company, indirect labor is
budgeted for $81,000, and factory supervision is
budgeted for $36,000 at a normal capacity of
120,000 direct labor hours. If 140,000 direct
labor hours are worked, the flexible budget total
for these costs is:
a. $136,500
b. $123,000
c. $130,500
d. $117,000
Transcribed Image Text:In the Crane Company, indirect labor is budgeted for $81,000, and factory supervision is budgeted for $36,000 at a normal capacity of 120,000 direct labor hours. If 140,000 direct labor hours are worked, the flexible budget total for these costs is: a. $136,500 b. $123,000 c. $130,500 d. $117,000
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