Nova Corporation produces a single product and uses a standard cost system to help control costs.Overhead is applied to production on the basis of machine-hours.According to the company's flexible budget,the following overhead costs should be incurred at an activity level of 18,000 machine-hours (the denominator activity level chosen for the current year):

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The Answer of Nova Corporation produces a single product and uses a standard cost system to help control costs.Overhead is applied to production on the basis of machine-hours.According to the company's flexible budget,the following overhead costs should be incurred at an activity level of 18,000 machine-hours (the denominator activity level chosen for the current year):

Nova Corporation Produces a Single Product and Uses a Standard