Star Company is preparing a flexible budget for 2008 and the following maximum capacity estimates for department Z are:
Assume that Star's normal capacity is 80 per cent of maximum capacity. What would be the total factory overhead rate per direct labour hour in a flexible budget at normal capacity?

Question

Star Company is preparing a flexible budget for 2008 and the following maximum capacity estimates for department Z are: 
Assume that Star's normal capacity is 80 per cent of maximum capacity. What would be the total factory overhead rate per direct labour hour in a flexible budget at normal capacity?

Quizplus · Accepted Answer

The Answer of Star Company is preparing a flexible budget for 2008 and the following maximum capacity estimates for department Z are: 
Assume that Star's normal capacity is 80 per cent of maximum capacity. What would be the total factory overhead rate per direct labour hour in a flexible budget at normal capacity?

Star Company Is Preparing a Flexible Budget for 2008 and the Following