ACCOUNTING
Multiple Choice
In flexible budgets, costs that remain the same regardless of the output levels within the relevant Shimon Corporation manufactures industrial-sized water coolers and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information pertains to the company's manufacturing overhead data.
Budgeted output units 15,000 units
Budgeted machine-hours 5,000 hours
Budgeted variable manufacturing overhead costs for 15,000 units $161,250
Actual output units produced 22,000 units
Actual machine-hours used 7,200 hours
Actual variable manufacturing overhead costs $242,000
What is the flexible-budget amount for variable manufacturing overhead?
a. $165,000
b. $236,500
c. $242,000
d. none of the above
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