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New York University Operations And Supply Chain Management Assignment Help - Colliers Company


Question - Colliers Company has determined that the variable overhead rate is $2.90 per direct labor hour in the
Fabrication Department. The normal production capacity for the Fabrication Department is 14,000
hours for the month. Fixed costs are budgeted at $65,800 for the month.
a. Prepare a monthly factory overhead flexible budget for 13,000, 14,000, and 15,000 hours of
production.
b. How much overhead would be applied to production if 15,000 hours were used in the department
during the month?

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