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B-21.06 Problem - Variable factory overhead is applied at...

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B-21.06 Ikon Equipment produces exercise equipment. The following schedule reveals anticipated monthly production of bicycles for the first three months of the year: January 11,000 February 14,000 March 12,500 Ikon budgets for three direct labor hours per bicycle, at an average cost of $16.50 per hour.
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Unformatted text preview: Variable factory overhead is applied at the rate of $10.25 per direct labor hour. Fixed overhead is expected to run $110,000 per month, which includes $10,000 per month of noncash expenses related to depreciation. Determine the total expected monthly cash outflow for labor and overhead....
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