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Accounting

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Gray Corporation has a high probability of operating at 40,000 activity hours during the upcoming period, and lower probabilities of operating at 30,000 hours and 50,000 hours. The company's flexible budget revealed the following: 30,000 Hours 40,000 Hours 50,000 Hours Variable costs $135,000 $180,000 $225,000 Fixed costs 720,000 720,000 720,000 if Gray operated at 35,000 hours, its total budgeted cost would be: $877,500 $945,000 $787,500 $997,500. $810,000 QUESTION 8 Laura's production data for a new deluxe product were taken from the most recent quarterly production budget: July August September Planned production in units 1,000 1,100 980 In addition, Laura produces 5,000 units a nyonth of its standard product. It takes two direct labor hours to produce each standard unit and 2.25 direct labor hours to produce each deluxe unit. Laura's cost per labor hour is $15. Direct labor cost for July would be budgeted at $183,750 $187,125 $189,125 $194,750 None of the answers is correct

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