During the first two years of operations, Memories, Inc.’s overhead costs have fluctuated from month to month. Although overhead appears to go up and down according to the number of figurines produced each month, the accounting manager has noticed that this is not always the case. For example, in the fourteenth month of operations, the manufacturing facility was closed for almost 10 days because of severe weather and production for that month was very low. However, overhead costs were only reduced by 25% from the prior month.
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