Sawaya co., ltd., of japan is a manufacturing company whose total

Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs at high and low levels of activity for recent years are given below:

 

  Level of Activity
  Low   High
Direct labor-hours   50,000     75,000  
Total factory overhead costs $ 14,250,000   $ 17,625,000  

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