Mills Company uses standard costing for direct materials and direct labour. Management would like to use standard costing for variable and fixed overhead.
The following monthly cost functions were developed for overhead items: The cost functions are considered reliable within a relevant range of 70,000 to 100,000 direct labour hours. The company expects to operate at 80,000 direct labour hours per month.
Information for the month of September is as follows: Required:

Question

Mills Company uses standard costing for direct materials and direct labour. Management would like to use standard costing for variable and fixed overhead.
The following monthly cost functions were developed for overhead items:  The cost functions are considered reliable within a relevant range of 70,000 to 100,000 direct labour hours. The company expects to operate at 80,000 direct labour hours per month.
Information for the month of September is as follows:  Required:

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The Answer of Mills Company uses standard costing for direct materials and direct labour. Management would like to use standard costing for variable and fixed overhead.
The following monthly cost functions were developed for overhead items:  The cost functions are considered reliable within a relevant range of 70,000 to 100,000 direct labour hours. The company expects to operate at 80,000 direct labour hours per month.
Information for the month of September is as follows:  Required:

Mills Company Uses Standard Costing for Direct Materials and Direct