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Davis Corporation Has Developed the Following Flexible Budget Formula for Monthly

Question 61

Multiple Choice

Davis Corporation has developed the following flexible budget formula for monthly overhead:
For output of less that 200,000 units:

 For output of less than 200,000 units:  $36,600 + $.80(units)
 For output of 200,000 units or more:  $43,000 + $.80(units)

How much overhead should Davis expect if the firm plans to produce 200,000 units?


A) $52,600
B) $59,000
C) $196,600
D) $203,000

Correct Answer:

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