Ricas fleet feet inc produces dance shoes for stores all


Question - Rica's Fleet Feet, Inc., produces dance shoes for stores all over the world. While the pair of shoes are boxed individually, they are crated and shipped in batches. the shipping dept records both variable and fixed overhead costs. The following information pertains to shipping cost for 2008.

Static-Budget Actual Results

Pairs of shoes shipped 240000 180000

Ave # pairs of shoes p/crate 12 10

Packing hrs per crate 1.2 1.1

Variable OH cost per hr $20 $21

Fixed OH cost 60,000 55,000

What is the static budget and flexible budget number of crates for 2008?

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Accounting Basics: Ricas fleet feet inc produces dance shoes for stores all
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