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?
A) $6.00
B) $6.50
C) $7.50
D) None of the given answers
Correct Answer:
Verified
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