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    Flexible budget amounts

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    The following costs appear in Malgorzata Company's flexible budget at an activity level of 15,000 machine hours:
    Total Cost
    Indirect materials: $7,800
    Factory rent: $18,000

    What would be the flexible budget amounts at an activity level of 12,000 machine hours if indirect materials is a variable cost and factory rent was a fixed cost?

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    Solution Summary

    This solution provides the steps to calculate the flexible budget amounts in the given business math problem.