Evening Star, Inc. produces binoculars of two quality levels: field and professional. The field model requires threee direct-labor hours, while the professional binoculars require five hours. The firm uses direct-labor hours for flexible budgeting.
1. How many standard hours are allowed in May, when 200 field models and 300 professional binoculars are manufactured?
2. Suppose the company based its flexible overhead budget for May on the number of binoculars manufactured, which is 500. What difficulties would this approach cause?
Star Inc. -Base for flexible overhead budget
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Hours xxx xxxx
The xxxxx standard xxxxxxx xxxxxxxxxxxx xxxxx in May x xxxxx xxxxxx
xxxxxx flexible xxxxxxxx xxxxxx xxxxx on xxxxx number of xxxxxxxxxx xxxxxxxx xxxx xxx xx xxxxxxxxxx xxxxxxxxx 500 binoculars xxxx xxx xxxxxx and 400 professionals. xxxxxx on xxx composition of 500 xxxxx different xxxxx of direct xxxxx xxxxx xx xxxxxxxx and different xxxxxxx xx variable-overhead xxxxx xxxxx be found. xxxx xxx xxxxxx xxx of confusion xxx xxxxxxxxxxxxxxxxx xxx xxxxxx xxx xxxxxxxx budget xx number xx binoculars is xxxxxxxxxxxxx
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