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Helms Manufacturing Co.'s static budget at 6,000 units of production includes $36,000 for direct labor and $6,000 for direct materials. Total fixed costs are $24,000.
Instructions
a. Determine how much would appear on Helms's flexible budget for 2010 if 9,000 units are produced and sold.
b. How would this comparison differ if a static budget were used instead of a flexible budget for performance evaluation?
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