Levelor Company's flexible budget shows $10,710 of overhead at 75% of capacity, which was the operating level achieved during Ma
1 answer:
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Answer:
Option b ($150,000 decrease) is the correct answer.
Explanation:
Given:
Fixed manufacturing overhead,
= $65
Units,
= 10,000
According to the question,
Current cost is:
=
= ($)
The expected cost will be:
=
By substituting the values, we get
=
=
=
then,
=
= ($)
Thus the above is the right answer.