Wednesday, June 8, 2011

2. What is the flexible-budget amount for variable manufacturing overhead?

ACCOUNTING

Multiple Choice

White Corporation manufactures football jerseys and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data.



Budgeted output units 20,000 units

Budgeted machine-hours 30,000 hours

Budgeted variable manufacturing overhead costs for 20,000 units $360,000



Actual output units produced 18,000 units

Actual machine-hours used 28,000 hours

Actual variable manufacturing overhead costs $342,000


What is the flexible-budget amount for variable manufacturing overhead?

a. $324,000

b. $342, 000

c. $380,000

d. none of the above

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