Wednesday, June 8, 2011

2. What is the flexible-budget amount?

ACCOUNTING

Multiple Choice

Roberson Corporation manufactured 30,000 ice chests during September. The overhead cost-allocation base is $11.25 per machine-hour. The following variable overhead data pertain to September.


Actual Budgeted

Production 30,000 units 24,000 units

Machine-hours 15,000 hours 10,800 hours

Variable overhead cost per machine-hour: $11.00 $11.25


What is the flexible-budget amount?

a. $121,500

b. $151,875

c. $165,000

d. $168,750
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