INTRODUCTION e.edu
10-5: The Resistol Company manufactures hats. The company uses a Standard Costing System. Production of one hat is budgeted at $10 of direct materials, and 2 hours of direct labor at $20 per hour. Overhead is budgeted at $500,000, and is allocated based on direct labor hours. The static budget calls for production of 10,000 hats in 2005. ................
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