Hermansen Corporation manufactures large commercial doors for warehouses and other facilities. In the latest month, the company
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- Hermansen Corporation manufactures large commercial doors for warehouses and other facilities. In the latest month, the company has budgeted for the production of 5,100 doors.
- Actual production was 5,400 doors.
- According to the standards, 3.8 machine-hours are required for each door.
- The actual machine hour for the month was 20,880 machine hours.
- The standard consumable cost is $7.90 per machine hour.
- The actual supply cost for the month was $152,063.
- The cost of consumables is one element of the variable production load.
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