Hill Bikes Unlimited uses a flexible budget and standard costs to aid planning and control of its bicycle production.

VOH or FOH Rate = $ Budgeted OH                         BQO = Budgeted number of units EXPECTED to be made

                                       (BQO x BQI)                          BQI  = Budgeted quantity of INPUTS for each units; INPUTS are whatever we use to

                                                                                                “apply” or “allocate” OH.  (Most likely DL hrs or MHrs.)

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