Answer the following questions using the information below:
Rutch Corporation manufactured 54,000 door jambs during September. The fixed-overhead cost-allocation rate is $50.00 per machine-hour. The following fixed overhead data pertain to September:

-What is the flexible-budget amount?
A)$100,000
B)$53,400
C)$57,500
D)$51,750

Question

Answer the following questions using the information below:
Rutch Corporation manufactured 54,000 door jambs during September. The fixed-overhead cost-allocation rate is $50.00 per machine-hour. The following fixed overhead data pertain to September:
 
-What is the flexible-budget amount?
A)$100,000 
B)$53,400 
C)$57,500 
D)$51,750

Quizplus · Accepted Answer

The flexible-budget amount is typically calculated based on actual activity levels, and $57,500 is likely the amount that corresponds to the adjusted budget for the actual level of activity.

Answer the Following Questions Using the Information Below