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San Diego State University Operations And Supply Chain Management Assignment Help - Planning

Question - Folson Company is planning to produce 4,250,000 speakers for the coming year. Actual production was 4,000,000 speakers. Each speaker requires 0.80 direct labor hours per unit. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. The budgeted variable overhead for the coming year is $680,000. The actual variable overhead incurred was $714,000. The applied variable overhead for the year is Answer a. $800,000. b. $714,000. c. $640,000. d. $680,000. e. none of these.

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