Production budget based on a calendar year
Neely, Inc., is preparing its direct labor budget for 2010 from the following production budget based on a calendar year.
Quarter Units Quarter Units1 20,000 3 35,0002 25,000 4 30,000
Each unit requires 1.6 hours of direct labor.
Expected delivery within 24 Hours
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Price too high 20 Incorrect bill 8 Needed to return to correct problem 50 Total 10. Use OM Explorer to draw a bar chart and a Pareto chart to identify the significant service problems.
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