The following budget for the 80,000-unit normal production level was prepared by the Montgomery Corporation for September:
During September, the Production Department actually produced 90,000 units at a total manufacturing cost of $165,000.
-Refer to the above data. A summary of Montgomery's performance in September would not show:
A) Actual total costs under budget by $1,000.
B) Total costs of $175,775 budgeted for 90,000 units.
C) Actual total costs under budget by $10,775.
D) Overhead applied to production of $64,350.

Question

The following budget for the 80,000-unit normal production level was prepared by the Montgomery Corporation for September: 
  During September, the Production Department actually produced 90,000 units at a total manufacturing cost of $165,000.
-Refer to the above data. A summary of Montgomery's performance in 	September would not show:
A) Actual total costs under budget by $1,000. 
B) Total costs of $175,775 budgeted for 90,000 units. 
C) Actual total costs under budget by $10,775. 
D) Overhead applied to production of $64,350.

Quizplus · Accepted Answer

The Answer is A

The Following Budget for the 80,000-Unit Normal Production Level Was