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Scenario: ABC Manufacturing prepared a master budget with the following costs for 5,000 units: • Direct materials: $25,000 . Direct labor: $40,000 • Variable overhead: $15,000 Fixed overhead: $50,000 The company actually sold 5,500 units. Question: What would the direct labor cost be in a flexible budget based on actual sales?

Scenario: ABC Manufacturing prepared a master budget with the following costs for 5,000 units: • Direct materials: $25,000 . Direct labor: $40,000 • Variable overhead: $15,000 Fixed overhead: $50,000 The company actually sold 5,500 units. Question: What would the direct labor cost be in a flexible budget based on actual sales?

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Scenario: ABC Manufacturing prepared a master budget with the following costs for 5,000 units: • Direct materials: $25,000 . Direct labor: $40,000 • Variable overhead: $15,000 Fixed overhead: $50,000 The company actually sold 5,500 units. Question: What would the direct labor cost be in a flexible budget based on actual sales?
Transcribed Image Text:Scenario: ABC Manufacturing prepared a master budget with the following costs for 5,000 units: • Direct materials: $25,000 . Direct labor: $40,000 • Variable overhead: $15,000 Fixed overhead: $50,000 The company actually sold 5,500 units. Question: What would the direct labor cost be in a flexible budget based on actual sales?
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