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Garner Company Planned to Produce 12,000 Units

Question 163

Multiple Choice

Garner Company planned to produce 12,000 units. Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour. Actual sales were 14,000 units requiring 20,000 machine hours. Actual processing cost was $222,000. _ is the flexible budget amount for processing.


A) $222,000
B) $188,000
C) $225,000
D) $213,500

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