Answer the following questions using the information below:
Hobart Corporation manufactured 20 000 heaters during November.The overhead cost-allocation base is $15.75 per machine-hour.The following variable overhead data pertain to November:
$$\begin{array} { l r r }
& \text { Actual } & \text { Budgeted } \
\text { Production } & 20000 \text { units } & 22000 \text { units } \
\text { Machine-hours } & 7875 \text { hours } & 9000 \text { hours } \
\text { Variable overhead cost per machine-hour: } & \$ 15.50 & \$ 15.75
\end{array}$$
-What is the flexible-budget amount?
A)$124 031.30
B)$128 863.64
C)$139 500.00
D)$124 000.00

Question

Answer the following questions using the information below:
Hobart Corporation manufactured 20 000 heaters during November.The overhead cost-allocation base is $15.75 per machine-hour.The following variable overhead data pertain to November:
 $$\begin{array} { l r r } 
& \text { Actual } & \text { Budgeted } \
\text { Production } & 20000 \text { units } & 22000 \text { units } \
\text { Machine-hours } & 7875 \text { hours } & 9000 \text { hours } \
\text { Variable overhead cost per machine-hour: } & \$ 15.50 & \$ 15.75
\end{array}$$
-What is the flexible-budget amount?
A)$124 031.30
B)$128 863.64
C)$139 500.00
D)$124 000.00

Quizplus · Accepted Answer

The flexible-budget amount is calculated based on actual levels of activity rather than the static budget levels. It adjusts the budget for the actual volume of output, and without specific details on how the figures were derived, option B is chosen based on the context provided.

Answer the Following Questions Using the Information Below: Hobart Corporation

Answer the Following Questions Using the Information Below:
Hobart Corporation