-Refer to the Figure $\text { Prepare an overhead budget for the expected activity level for the coming year. }$

question 134

Essay

$\begin{array}{lrr}\text { Overhead Item }&\text { Fixed Cost }&\text { Variable Rate per DLH }\\\text { Maintenance } & \$ 52,000 & \$ 1.20 \\\text { Power } & & 1.50 \\\text { Indirect labour } & 79,500 & 4.80 \\\text { Rent } & 54,000 &\end{array}$
-Refer to the Figure.
Required: A. $\text { Prepare an overhead budget for the expected activity level for the coming year. }$
B. Prepare an overhead budget that reflects production that is $10 \%$ higher than expected (for both products).
C. Prepare an overhead budget that reflects production that is $10 \%$ lower than expected (for both products).

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Definitions:

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariff barriers.

Competition

The rivalry among businesses to attract customers, which can lead to improvements in products, services, and prices.

Efficiency

The optimal allocation of resources to maximize the production of goods and services.

Quota

A government-imposed trade restriction that limits the quantity or monetary value of goods that can be imported or exported during a specific time period.