ACCOUNTING
Multiple Choice
Jenny’s Corporation manufactured 25,000 grooming kits for horses during March. The fixed-overhead cost-allocation rate is $20.00 per machine-hour. The following fixed overhead data pertain to March.
Actual Static Budget
Production 25,000 units 24,000 units
Machine-hours 6,100 hours 6,000 hours
Fixed overhead costs for March $123,000 $120,000
What is the flexible-budget amount?
a. $120,000
b. $122,000
c. $123,000
d. $125,000
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