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Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report L.O. P1, P2, P3, C2 [The following information applies to the questions displayed below.] Kwikeze Company set the following standard costs for one unit of its product. The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% level. Overhead Budget (75% Capacity) The company incurred the following actual costs when it operated at 75% of capacity in October.

Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report L.O. P1, P2, P3, C2
[The following information applies to the questions displayed below.]

Kwikeze Company set the following standard costs for one unit of its product.

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% level.

Overhead Budget (75% Capacity)

The company incurred the following actual costs when it operated at 75% of capacity in October.

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