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Question - Flexible Budget - At normal capacity, Boulder Products Corp. Manufactures 10,000 trail bikes. At that level, unit variable costs for the Assembly Department are:
Direct materials $30
Direct labor 60
Indirect labor 30
Repairs and maintenance 15
General factory expenses 15
Total $150
Fixed expenses are $150,000 for indirect labor, $175,000 for repairs and maintenance, and $80,000 for general factory.
Required - Prepare a flexible budget for the Assembly Department at 70%, 80%, 90%, and 100% of normal capacity.
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